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The proposed IFC investment is to support Louis Dreyfus Company Brasil S.A. (“LDC Brazil” or the “Company”), in purchasing crops from eligible farmers committed to zero deforestation or conversion of natural habitat (“the Project”). This investment will be utilized for the sourcing of an estimated 500,000 MT of soy or corn from pre-financed direct suppliers and farmers on the spot market that comply with LDC’s supply chain and this investment requirements. IFC funds will not be used for indirect purchases (i.e., via middlemen/aggregators). Total estimated soybean/corn production is largely expected to come from approximatively 143,000 ha in Mato Grosso, Goiás and Minas Gerais states. The proposed financing package is of up to US$200 million to be comprised of (i) an A Loan in the amount of up to US$100 million; and (ii) a B Loan in the amount of up to US$100 million. LDC Brazil soy/corn operations are located in the main production areas, away from the current principal frontiers of agricultural expansion that are causing natural habitat conversion. These include three crushing plants (Alto Araguaia, Mato Grosso with a daily crushing capacity of 3,000 MT; Ponta Grossa, Paraná with a daily crushing capacity of 3,000 MT; and Jataí, Goiás with a daily crushing capacity of 2,000 MT), a network of 31 warehouses, 7 processing plants, 5 port terminals and 2 waterway terminals. Soybeans and corn sourced under this proposed investment will be transported to these storage facilities. The proposed investment does not comprise expansion of existing assets and facilities. LDC is a global merchant and processor of agricultural commodities, active in over 100 countries, employing approximately 17,000 people worldwide. The company reported consolidated net sales of over US$49 billion for the full year 2021. Its operations span six geographic regions, among these North Latin America (Brazil), where the company is present since 1942 and operates through its subsidiary LDC Brazil.
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