WASHINGTON – IDB Invest partnered with the International Finance Corporation (IFC), Finnvera and J.P. Morgan to provide a comprehensive financial package to support Arauco's Sucuriú Greenfield Pulp Project, a state-of-the-art enterprise in Mato Grosso do Sul, Brazil, that is expected to help establish a new benchmark in efficiency and environmental performance in the global pulp industry.

As the most competitive pulp producing country, Brazil offers fertile ground for sustainable forestry and industrial growth. The Sucuriú Project will capitalize on this potential, driving competitiveness and sustainability in the country’s pulp sector. The project will integrate cutting-edge technologies and sustainable practices and address key development challenges by strengthening industrial productivity, boosting exports, and promoting regenerative materials and renewable energy.

The transaction includes a comprehensive financing package totaling $2.2 billion where J.P. Morgan acted as Global Coordinator. The financing includes a $1.25 billion loan co-led by IDB Invest and IFC including eight participant banks and $970 million in Export Credit Agency financing guaranteed by Finnvera.

The project will employ cutting-edge technology and integrate renewable energy generation to develop a state-of-the-art pulp mill with an annual capacity of 3.5 million metric tons of Bleached Hardwood Kraft Pulp, supported by 400,000 hectares of sustainably managed eucalyptus and biomass-based energy generation. 

The project will contribute to the development and export growth of the State of Mato Grosso do Sul, particularly in the municipality of Inocência, where the economic transformation will be most pronounced. It will create approximately 14,000 temporary jobs during construction and 6,000 permanent jobs during operations, while generating 400 MW of renewable energy—45% of which will be sold to Brazil’s national grid, contributing to the country’s renewable energy goals. 

The multilateral institutions’ and export credit agency’s involvement aligns compliance with international environmental and social standards, enhances stakeholder engagement, and supports technical advisory services in climate, social, and value chain areas. Through this strategic investment, the lenders reinforce their commitment to sustainable industrial development and private sector-led growth in Brazil. 

About IDB Invest 

IDB Invest is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $22 billion in assets under management and more than 440 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet its clients' needs across various sectors. Visit our website: idbinvest.org/en. 

About Arauco 

Arauco is a global company with more than 50 years of experience in producing and managing renewable forest resources. Through their integral use, we participate in businesses such as pulp, wood, panels, and energy, with industrial operations and commercial offices in more than 33 countries. With forest and industrial presence in Chile, Argentina, Brazil, Uruguay, Mexico, the United States, Canada, Europe, and South Africa, the company develops products that are part of diverse industries such as paper, construction, packaging, furniture, apparel, retail, and energy, reaching customers in the world’s main markets. Our management is founded on the renewable bioeconomy, where wood is the central raw material for designing sustainable products that provide competitive advantages across different industries. Arauco manages 1.7 million hectares of forest assets dedicated both to sustainable production and to the conservation and restoration of ecosystems. The company has been carbon neutral since 2020 and operates under a business model that combines innovation, resilience, and the creation of shared value with employees, communities, customers, and investors. With a long-term vision, the responsible management of its plantations and forests, together with the production of renewable products, stands at the core of its sustainability model. For more information, please visit www.arauco.com 

About IFC 

IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2025, IFC committed a record $71 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.

About Finnvera 

Finnvera strengthens the operating potential and competitiveness of Finnish enterprises by offering loans, guarantees, export credit guarantees, and other services associated with the financing of exports. Finnvera is a specialized financing company owned by the State of Finland and the Export Credit Agency (ECA) of Finland. Finnvera is one of the key organizations in Team Finland network that accelerates business internationalization and growth. At the end of March (Q1/2025), Finnvera’s exposure for export credit guarantees, export guarantees and special guarantees amounted to EUR 22.9 billion. For more information, visit www.finnvera.fi/eng