Washington, D.C., December 9, 2004 —
The International Finance Corporation, the private sector arm of the World
Bank Group, signed a $50 million loan agreement with Aracruz Celulose S.A.,
the world's leading producer of bleached eucalyptus kraft pulp and one
of the largest exporters in Brazil. IFC’s 10-year loan will support various
corporate initiatives by Aracruz, including an expansion of the company’s
sustainable business practices and supporting specific social and environmental
investments.
During the signing ceremony, Peter Woicke, Head of IFC and Managing Director
of the World Bank, noted, “This transaction fits well with IFC’s strategy
for the forest products sector, which focuses our efforts on competitive
projects that emphasize sustainable forestry management, eco-efficient
technologies, and environmental investments. In addition, our investment
will also benefit Brazil by increasing the competitiveness of a company
that serves as a benchmark in its industry for efficiency and generates
large export revenues.”
Carlos Aguiar, Aracruz’s Chief Executive Officer, said, “This transaction
is an opportunity for IFC and Aracruz to start a business relationship
that will provide the company with a stable long-term funding base”. “It
will also corroborate Aracruz’s corporate governance, environmental and
social practices, helping set industry standards”, he added.
Established in 1967, Aracruz operates two pulp mills in the states of Espírito
Santo and Rio Grande do Sul, with a combined annual capacity of 2.4 million
metric tons. Aracruz also owns 247,000 hectares of high-quality eucalyptus
plantations, intermingled with 128,000 hectares of native forest reserves,
which are specially maintained by the company to preserve the ecosystem
balance.
The mission of IFC (www.ifc.org)
is to promote sustainable private sector investment in developing countries,
helping to reduce poverty and improve people’s lives. IFC finances private
sector investments in the developing world, mobilizes capital in the international
financial markets, helps clients improve social and environmental sustainability,
and provides technical assistance and advice to governments and businesses.
From its founding in 1956 through FY04, IFC has committed more than $44
billion of its own funds and arranged $23 billion in syndications for 3,143
companies in 140 developing countries. IFC’s worldwide committed portfolio
as of FY04 was $17.9 billion for its own account and $5.5 billion held
for participants in loan syndications.
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