Washington, D.C., February 16, 2017
—IFC, a member of the World Bank Group, has agreed to lend $150 million to Yara International ASA, one of the world’s largest fertilizer producers, to support food production through investments in new fertilizer production in Zambia and distribution in Brazil and Colombia.
The proceeds of the IFC financing will be used for acquiring and upgrading fertilizer production facilities in Zambia, as well as expanding and improving efficiency of fertilizer production, warehousing and distribution facilities in Brazil and Colombia. These investments are expected to improve availability and affordability of high quality fertilizers, strengthen competitiveness of local famers, thereby creating jobs and enhancing food production.
Yara will provide farmer training to promote adoption of precision farming techniques for reducing water use and carbon emissions. Broader access to premium fertilizer should also benefit the environment by increasing yields from existing land and water resources.
“Meeting food demand for a growing global population with limited land and water resources requires access to high-quality fertilizers and focused work to improve resource efficiency,” said Torgeir Kvidal, Chief Financial Officer of Yara International. “Improving access to value-added crop nutrition solutions is an effective way for Yara to contribute to improving global food security, while at the same time reducing the climate footprint of agriculture.”
“This investment is in line with IFC’s strategic priorities in the Latin America and African regions” said Sergio Pimenta, IFC Director for Manufacturing, Agribusiness and Services. “It will support increase availability of higher-quality fertilizers at more affordable cost, support climate smart farming and create jobs in Brazil, Colombia and Zambia.”
Investments in manufacturing are a priority for IFC because of this sector’s importance for generating jobs and its ability to make other economic industries in developing countries, such as agribusiness, health and infrastructure, more efficient and competitive. In FY16, IFC committed $1.4 billion in new manufacturing investments around the world.
About Yara
Yara’s knowledge, products and solutions grow farmers’, distributors’ and industrial customers’ businesses profitably and responsibly while protecting the earth’s resources, food, and environment.Our fertilizers, crop nutrition programs and technologies increase yields, improve product quality and reduce the environmental impact of agricultural practices. Our industrial and environmental solutions improve air quality by reducing emissions from industry and transportation, and serve as key ingredients in the production of a wide range of goods. Throughout our organization, we foster a culture that promotes the safety of our employees, contractors and societies.Founded in 1905 to solve emerging famine in Europe, today Yara has a worldwide presence with more than 16,000 employees and sales to more than 150 countries.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with 2,000 businesses worldwide, we use our six decades of experience to create opportunity where it’s needed most. In FY16, our long-term investments in developing countries rose to nearly $19 billion, leveraging our capital, expertise and influence to help the private sector end extreme poverty and boost shared prosperity. For more information, visit
www.ifc.org
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