📋 Tender Overview
COMPANY NAME
Arauco Cellulose and Constitution SA
PROJECT NUMBER
15329-01
Category A projects could result in potentially significant environmental and/or social risks and impacts, which are diverse, irreversible, or unprecedented that may extend beyond the boundaries of the actual project site or facilities. In principle, Category A includes projects which have significant impacts on protected or sensitive areas21 and/ or vulnerable groups.
E&S CATEGORY tooltip
A
COUNTRY
Brazil
SECTOR
Manufacturing
STATUS
Proposed
DISCLOSED DATE
03/13/2025
Projected date at which a project will be put forward for the Board of Executive Directors’ approval.
PROJECTED BOARD DATE tooltip
07/07/2025
APPROVAL DATE
N/A
SIGNED DATE
N/A
SPONSORING ENTITY
N/A
INVESTMENT OPERATIONS DEPARTMENT CONTACT
Corporates Division
INVESTMENT TYPE
Loan
SYNDICATED AMOUNT
USD $ 250,000,000
FINANCING AMOUNT
USD $ 500,000,000
CURRENCY
USD
Project scope and objective
Sucuriú (the "Project") is an integrated development for the construction and operation of a pulp mill located 50 km from the municipality of Inocência, in the state of Mato Grosso do Sul, Brazil. The Project will be executed by Celulosa Arauco y Constitución SA ("Arauco"), a leading Chilean company in forestry and timber products, headquartered in Santiago. The investment planned for the Project is US$4.6 billion to establish one of the largest pulp plants in the world, with an estimated annual production capacity of 3.5 million tons of short fiber pulp. Construction is expected to begin in 2025, with operations beginning in late 2027. The plant will be supplied by 400,000 hectares of sustainable eucalyptus plantations owned by Arauco.
The transaction will be structured as an A/B Financing Loan of up to US$500 million, with a term of up to 10 years and a grace period of up to 5 years. The resources will be allocated to construction, specific development of the Project's infrastructure, management of plantations and implementation of renewable energy facilities, promoting sustainability through water reuse, energy efficiency and emissions reduction.
