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Washington, D.C., November 21, 2011
—IFC, a member of the World Bank Group, is providing a $40 million loan to MBAC Fertilizer Corporation to expand the company’s production facilities, which will help create jobs and increase food production.
The investment is part of IFC's effort to promote private sector development in the Amazon and Cerrado regions in Brazil. IFC’s loan will be used for the development of the Itafós Arraias SSP project, which includes a phosphate mine, a processing plant, and related infrastructure in central Brazil, near the border of Goiás and Tocantins states. MBAC’s close proximity to phosphate resources and its local customer base makes its fertilizer products a cost-effective alternative to imported phosphate fertilizers that dominate much of Brazil’s agricultural sector.
“We are extremely pleased with the continued support we have received from IFC,” said Antenor Silva, President and CEO of MBAC. “They have played an important role in mobilizing the financial resources needed to finance our project and aggressively pursue our start-up schedule and commence production.”
IFC’s loan to MBAC follows an equity investment of 33 million Canadian dollars that IFC made in the company in September 2011.
“MBAC shares IFC’s commitment to promoting best practice environmental and social standards in Brazil’s fertilizer sector,” said Paolo Martelli, IFC Director for Latin America. “We look forward to a long-term partnership as MBAC expands its operations and increases its capacity to supply Brazil’s agricultural sector, an important source of economic growth for the country.”
The agribusiness sector, including fertilizers, is a key strategic priority for IFC as the world tackles to growing challenge of food security. The investment in MBAC reflects IFC’s commitment to support viable local companies that will help further develop Brazil’s agribusiness value chain.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit
www.ifc.org
About MBAC
MBAC is focused on becoming a significant integrated producer of phosphate and potash fertilizers in the Brazilian and Latin American markets. MBAC has an experienced team with over 150 years of combined experience in the business of fertilizer operations, management, marketing and finance within Brazil. In October 2008, MBAC acquired Itafós Mineração Ltda, which consisted of a phosphate mine, a mill and plant and related infrastructure, all located in central Brazil. MBAC’s exploration portfolio includes a number of additional exciting phosphate and potash projects, which are also located in Brazil. The Santana Phosphate project is a high grade phosphate deposit located in close proximity to the largest fertilizer market of Mato Grosso State and animal feed market of Pará State. The Company continues to search for additional fertilizer opportunities in the Brazilian and other Latin-American markets, where strong agricultural fundamentals and unique opportunities are expected to provide attractive growth opportunities in the near future. Further information on MBAC can be found on the Company's website at
www.mbacfert.com
and on SEDAR at
www.sedar.com
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