Arboreal Timber (IFC-51263)

Countries
  • Uruguay
Geographic location where the impacts of the investment may be experienced.
Specific Location
City of Tacuarembó
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."
Borrower
ARBOREAL 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)
$ 40.00 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)
$ 40.00 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 Jan 16, 2026

Disclosed by Bank Dec 30, 2025

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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.

Arboreal S.A. (“Arboreal” or “the Company”) is a leading mass-timber producer in Latin America, with 100% market share in Uruguay and 50% market share across South America. The Company operates modern sawmill and Mass Timber (cross-laminated timber - CLT, and Glulam - GLT) facilities in Tacuarembó, Uruguay. Arboreal supplies certified softwood products (primarily Taeda pine) to markets in Asia, Europe, Oceania, South & Central America, and MENA (Middle East and North Africa). The proposed investment consists of an IFC A-loan of up to US$20 million and mobilization of an additional US$20 million from B-lenders, as part of a US$40 million financing package to support Arboreal’s FY25–27 investment program. IFC financing will support Arboreal’s FY26–28 investment program, focused on value addition and operational efficiency. Key initiatives include: (i) installation of a thermally modified timber (TMT) production line, (ii) deployment of a biomass/briquette system for byproducts and sawdust, and (iii) general capital expenditures at the Tacuarembó plant. Additionally, the program will refinance Arboreal’s existing debt. The Project is expected to begin in January 2026 and be completed by June 2027, leading to an estimated 10% increase in the Company’s employment.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Contact Information
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ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org.  You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

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How it works