Company name

Vale do Paraná S.A. Álcool e Açúcar

Project number

12010-01

Category B projects have potential environmental and/or social impacts and risks that are less adverse than those of a Category A and which are generally limited to the project site, largely reversible and can be mitigated via measures that are readily available and feasible to implement in the context of the operation.

E&S category
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B

Country

Brazil

Sector

Agribusiness

Status

In implementation

Disclosed date

07/25/2017

Projected date at which a project will be put forward for the Board of Executive Directors’ approval.

Projected board date
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08/25/2017

Approval date

09/06/2017

Signed date

02/20/2018

Sponsoring entity

Pantaleón Sugar Holdings Company Limited (“PSH” or “Pantaleón”) and Inversiones Manuelita S.A. (“Manuelita Group”)

Team leader

Antunes Castanho, Rafael

Investment type

Financing requested

N/A

Syndicated amount

USD $ 30,000,000

Financing amount

USD $ 25,000,000

Currency

USD

Project scope and objective

The proposed operation consists of a US$55 million senior loan to VDP, with a tenor of up to 8 years, including a 1.5-year grace period, to be used as follows: (i) US$28 million for the expansion and renewal of sugarcane plantations; (ii) US$20.5 million for the installation of a sugar factory with production capacity of 850 tons of raw sugar per day; and (iii) US$6.5 million to carry out adjustments to integrate the mill with a 48MW electric power cogeneration plant to be developed in a joint venture with Albioma (the "Loan").

VDP, established in 2003, located in Suzanapolis, Brazil, produces and commercializes ethanol, made from sugarcane, in the Brazilian market. In 2016, the Company milled 1.6 million tons of sugarcane and produced 139,000 m3 of ethanol, totaling sales of US$79 million.

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Environmental and social review

IDB Invest conducts an environmental and social due diligence (ESDD) commensurate with the nature, scale, and stage of the project, and with its level of environmental and social risks and impacts. The ESDD will confirm the project E&S categorization and assess the project with respect to the client requirements in IDB Invest Environmental and Social Sustainability Policy. The results of the ESDD, including any identified gaps are described in the Environmental and Social Review Summary (ESRS) provided below. Any gaps with respect to the IDB Invest Sustainability Policy at the time of the ESDD are addressed in the Environmental and Social Action Plan (ESAP) provided below.

ENVIRONMENTAL AND SOCIAL REVIEW SUMMARY

49.4 Kb

Client files

This section provides the key environmental and social assessment documents produced by the client for this project.

ENVIRONMENTAL AND SOCIAL ACTION PLAN (ESAP) - VALE DO PARANA

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Contact information

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PHONE NUMBER

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IDB Invest Contact

EMAIL

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PHONE

+1(202)-566-4566

ADDRESS

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