IFC, a member of the World Bank Group, will provide BRL150 million (US$47 million) of long-term financing to CerradinhoBio, an ethanol and biomass-based electricity producer operating in the state of Goias, in Brazil.
IFC’s ten-year investment in CerradinhoBio will help the company to increase its production of bioethanol used as renewable fuel by 28%, and more than double its generation capacity of bagasse-based electricity to be used for its own energy supply, with the excess being exported to the national electric grid. That will contribute to the reduction of GHG emissions by around 280,000 tons of CO2 equivalent per year, and help to further develop the Goias region, whose economy relies substantially on agribusiness.
The sugar and ethanol industry is key for economic development and job creation in Brazil, employing around 1 million people and accounting for 9.8 percent of the agribusiness exports.
Paulo Motta, CEO of CerradinhoBio, said:
"We welcome IFC’s support to our expansion plan. This financing will allow us to continue to develop our business and enhance our sustainability standards, but it is also important to help demonstrating IFC’s confidence in a sector that is of great importance for Brazil’s economic growth.”
Luiz Daniel de Campos, Principal Investment Officer, Agribusiness Department, IFC Brazil, said:
“Agribusiness is a strategic priority for IFC because of its potential for development and poverty reduction,” said “We are pleased that our support to CerradinhoBio will also help enhance sustainability standards in the industry as well as support the growth of renewable energy initiatives in Brazil.”