IFC, a member of the World Bank Group, is supporting a new project in Brazil to strengthen the diversification of the country's energy matrix. The US$70 million financing for Grupo Cocal will expand the company's ethanol and biogas production and will contribute to the renewal of its sugarcane plantations, with agricultural and climate-smart techniques.
The financing package consists of US$40 million from IFC's own account and US$30 million mobilized with two other financial institutions, Banco Itaú BBA (banking subsidiary of Itaú Group) and Rabobank. IFC's loan will support Grupo Cocal's investment program estimated at US$92 million, which includes the construction of a biogas production unit in the municipality of Narandiba (Sao Paulo State), the renovation of 27 thousand hectares of sugar cane and the replacement of agricultural machinery and equipment. IFC's resources will be used specifically in the construction of the biogas production plant and in agricultural practices that have vertical gains in production, qualitative gains in raw material, use of technology and precision agriculture.
