Santa Adelia (IFC-45828)

Countries
  • Brazil
Geographic location where the impacts of the investment may be experienced.
Specific Location
State of São Paulo
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Mar 28, 2022
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
USINA SANTA ADELIA S.A.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Mar 3, 2022

Disclosed by Bank Feb 24, 2022

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

 Founded in 1937, Usina Santa Adelia (“Santa Adelia” or the “Company”) is a Brazilian sugar & ethanol producer, operating 2 mills, namely Jaboticabal mill since 1940, the mill was modernized in 1973, producing sugar and ethanol and Pereira Barreto mill since 2007 producing ethanol. Both mills are located in the state of Sao Paulo with a total annual crushing capacity of 6 million tons of sugarcane. The company operated a third mill producing sugar and ethanol in Sud Mennucci (Pioneiros) which operations were transferred to Pereira Barreto in 2021. This consolidation was driven by a gain in production and resource efficiency, agricultural productivity, and logistical simplification. In total, the company landbank comprises 74,000 hectares (ha) of which 55,000 ha (own and partner plantations) represents ~75% of total cane supply. At the partner plantations, Santa Adelia manages the planting and harvesting of sugarcane. The remaining 25% comes from third-party suppliers. The company has a few annual/bi-annual harvest contracts in place, but most of the harvests contracts are from 3-7 years in duration. The Santa Adelia lands are all leased and 15,222 ha belong to Santa Adelia shareholders. Santa Adelia, which is a Copersucar member (a global trader of sugar and ethanol - http://copersucar.com/), has a product portfolio consisting of (i) raw and white sugar, (ii) hydrous and anhydrous ethanol, and (iii) renewable energy. Copersucar oversees logistical arrangements and commercialization of the production, and more recently provides hedging products for all members. This allows the Company to concentrate its efforts on improving the efficiency of its agricultural and industrial processes to reduce production costs. Santa Adelia has been a member of Copersucar since its foundation in 1959. During the 2020/2021 harvest, the company produced 113,162 tons white sugar, 147,402 tons raw sugar, 88,631 m³ hydrous and 254,794 m³ anhydrous ethanol. The company owns four co-generation facilities with a total installed capacity of 149 MW (one in Jaboticabal, two in Pereira Barreto and one in Sud Mennucci - Pioneiros; the latter being non-operational), which generated 341,816 MWh during the 2020/2021 harvest for its own use and exported approximately 70% of the total production to the grid annually.The proposed investment consists of a US$76 million financing package to Usina Santa Adelia.  IFC proposed loan is up to US50 million to support CAPEX investments for 2022 and 2023 for: (i) renewal and expansion of about 24,100 ha of sugarcane, most of it through the meiosi technique at their own and partner plantations and (ii) development and implementation of pivot and drip irrigation systems at Pereira Barreto plantation (impacting ~3,000 ha) (the “Project”). 

Investment Description
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Contact Information
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