Washington, D.C., March 19, 2008
—IFC, a member of the World Bank Group, has signed an agreement with SLC Agrícola, one of Brazil’s largest agricultural producers, to help the company expand operations and develop an integrated management system for identifying environmental and social risks and opportunities.
The $40 million long-term loan of up to10 years will support SLC Agrícola’s growth plan through the acquisition and leasing of new cultivable land. The company also plans to expand its cotton production capacity. Its investment program will help create jobs and establish farms in areas of Brazil where formal employment is limited, particularly in the northeast, one of the country’s poorest regions.
This is IFC’s first loan to a Brazilian company that focuses exclusively on primary agricultural production. “This financing is very important for SLC Agrícola because of the extended terms of the loan and the social and environmental enhancements that we will be able to develop with IFC’s support,” said Laurence Gomes, Financial and Investor Relations Director for SLC Agrícola.
“IFC has increased its focus on midsize Brazilian companies, and we support their efforts to improve environmental practices. We are partnering with SLC Agrícola because of its good corporate governance and implementation of risk management systems that address social and environmental issues,” said Andrew Gunther, IFC General Manager in Brazil. “SLC Agrícola was the first company in the agricultural sector to open up its capital and to be listed on the BOVESPA Novo Mercado.”
SLC Agrícola offers its employees good benefits, and it is the only company in the sector that has a profit participation program.
About IFC
IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC’s vision is that poor people should have the opportunity to escape poverty and improve their lives. In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through syndications and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries. For more information, visit
www.ifc.org
.
About SLC Agrícola
Founded in 1977, SLC Agrícola produces agricultural commodities, including cotton, soybeans, corn, and coffee, at nine production units that are strategically located in five Brazilian states. Its business model is based on a modern, high-scale production system with state-of-the-art technology, stringent cost control, and emphasis on social and environmental responsibility.
SLC Agrícola is part of the SLC Group, controlled by the Logemann family. It pioneered mechanized agriculture in Brazil by founding the first automotive harvesters in 1945, which led to a joint venture with the U.S.-based John Deere Company. Today, the company is helping strengthen Brazil’s position as a global leader in agriculture.
