Washington, D.C., November 21, 2011—IFC,
a member of the World Bank Group, is providing a $40 million loan to MBAC
Fertilizer Corporation to expand the company’s production facilities,
which will help create jobs and increase food production.
The investment is part of IFC's effort
to promote private sector development in the Amazon and Cerrado regions
in Brazil. IFC’s loan will be used for the development of the Itafós Arraias
SSP project, which includes a phosphate mine, a processing plant, and related
infrastructure in central Brazil, near the border of Goiás and Tocantins
states. MBAC’s close proximity to phosphate resources and its local customer
base makes its fertilizer products a cost-effective alternative to imported
phosphate fertilizers that dominate much of Brazil’s agricultural sector.
“We are extremely pleased with
the continued support we have received from IFC,” said Antenor Silva,
President and CEO of MBAC. “They have played an important role in mobilizing
the financial resources needed to finance our project and aggressively
pursue our start-up schedule and commence production.”
IFC’s loan to MBAC follows an equity
investment of 33 million Canadian dollars that IFC made in the company
in September 2011.
“MBAC shares IFC’s commitment to promoting
best practice environmental and social standards in Brazil’s fertilizer
sector,” said Paolo Martelli, IFC Director for Latin America. “We
look forward to a long-term partnership as MBAC expands its operations
and increases its capacity to supply Brazil’s agricultural sector, an
important source of economic growth for the country.”
The agribusiness sector, including fertilizers,
is a key strategic priority for IFC as the world tackles to growing challenge
of food security. The investment in MBAC reflects IFC’s commitment
to support viable local companies that will help further develop Brazil’s
agribusiness value chain.
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. We help developing countries achieve sustainable growth
by financing investment, providing advisory services to businesses and
governments, and mobilizing capital in the international financial markets.
In fiscal 2011, amid economic uncertainty across the globe, we helped our
clients create jobs, strengthen environmental performance, and contribute
to their local communities—all while driving our investments to an all-time
high of nearly $19 billion. For more information, visit www.ifc.org
MBAC is focused on becoming a significant
integrated producer of phosphate and potash fertilizers in the Brazilian
and Latin American markets. MBAC has an experienced team with over
150 years of combined experience in the business of fertilizer operations,
management, marketing and finance within Brazil. In October 2008,
MBAC acquired Itafós Mineração Ltda, which consisted of a phosphate mine,
a mill and plant and related infrastructure, all located in central Brazil.
MBAC’s exploration portfolio includes a number of additional exciting
phosphate and potash projects, which are also located in Brazil. The Santana
Phosphate project is a high grade phosphate deposit located in close proximity
to the largest fertilizer market of Mato Grosso State and animal feed market
of Pará State. The Company continues to search for additional fertilizer
opportunities in the Brazilian and other Latin-American markets, where
strong agricultural fundamentals and unique opportunities are expected
to provide attractive growth opportunities in the near future. Further
information on MBAC can be found on the Company's website at www.mbacfert.com
and on SEDAR at www.sedar.com.