📋 Tender Overview
Project Number: 48333
Company Name: SAO MARTINHO S/A.
Date ESRS Disclosed: Aug 2, 2024
Country: Brazil
Region: Latin America and the Caribbean
Environmental Category: B
Status: Pending Approval
Sector: Sugarcane and Beets
Industry: Agribusiness and Forestry
Department: Regional Industry MAS LAC & EUR
Project Description
The proposed IFC investment is a senior loan of up to US$165 million to São Martinho S.A. ( SMTO or the Company ), a Brazilian sugar and ethanol company (https://www.saomartinho.com.br/), operating three sugar mills in the state of São Paulo (São Martinho, Iracema, and Santa Cruz mills) which are producing sugar, ethanol, bioenergy, and by-products, and one mill in the state of Goias (Boa Vista mill) producing ethanol and bioenergy. IFC's use of proceeds will support the (i) construction of a biomethane plant, (ii) renewal of sugarcane plantation at Santa Cruz mill, and (iii) crop treatment related to biomethane (the Project ). The biomethane plant will be located at the Santa Cruz mill and has already secured the environmental permit (Installation License – LI) in September 2023. The construction of the plant has not started yet. This proposed investment will support SMTO to produce renewable energy, which can be converted into ethanol and substitute diesel.
SMTO manages 350,000 hectares (ha) of sugarcane production, of which 70% (~250,000 ha) is owned or under lease and partnerships. The remaining 30% (~100,000 ha) belongs to contract growers. Specifically, the sugarcane plantation for the Santa Cruz mill comprises ~35,000 ha, and its processing capacity is currently 5.6 million metric tons of sugarcane. More than 90% of Santa Cruz's planted area is owned by SMTO.
Financing Sources:
2) World Bank (WB)
1818 H Street, NW Washington, DC 20433 USA
Tel : (202) 473-1000
https://www.worldbank.org/
