Usina Cerradao - A/B Loan (IDBI-14200-01)

Countries
  • Brazil
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • IDB Invest (IDBI)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
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
May 3, 2023
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 Cerradao
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
  • Energy
  • Industry and Trade
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)
$ 39.63 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.
Loan Amount (USD)
$ 39.63 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.
Bank Documents
Primary Source

Original disclosure @ IDBI website

Updated in EWS Jan 23, 2024

Disclosed by Bank Dec 20, 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.

English disclosure:

As stated by the IDB Invest, the proposed financing consists of a long-term loan of at least R$280 million, with an 8-year term and 30-month grace period, so that Usina Cerradao can increase its sugarcane storage capacity from 4.2 million to 7 million tons/year. Such an increase in capacity will consequently allow the company to increase its production of sugar and ethanol, as well as its capacity to collect electricity by 57%, by burning a greater volume of residual biomass (sugar cane bagasse).
The increase in energy consumption will still allow Cerradao to remain self-sufficient in its operational needs, in addition to allowing the company to increase its supply of clean renewable energy to the market by approximately 95%.

Brazilian disclosure:

O financiamento proposto consiste em um empréstimo de longo prazo de até R$280 milhões, com prazo de 8 anos e 30 meses de carência, para que a  Usina Cerradão possa aumentar a sua capacidade de moagem de cana-de-açúcar de 4.2 milhões para 7 milhões de toneladas/ano. Tal aumento de capacidade permitirá, consequentemente, que a empresa eleve a sua produção de açúcar e etanol, assim como de sua capacidade de cogerar eletricidade em 57%, por meio da queima de um maior volume de biomassa residual (bagaço de cana).
O aumento da cogeração enérgetica permitirá, ainda, que a Cerradão se mantenha autossuficiente em suas necessidades operacionais, além de permitir que a empresa aumente em aproximadamente 95% a oferta de energia limpa renovável ao mercado.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Usina Cerradao is a sugar cane production company based in the Brazilian state of Minas Gerais.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Usina Cerradao Client Agriculture and Forestry

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

IDB Invest Team Leaders:

Maher Alexandre Guedes Kafrune

No contacts available at the time of disclosure.

Client - Usina Cerradao:

Rodrigo Campos Rezende - Gerente Administrativo
Phone: +55 34 3421-1800
Address: Rod. MG 255 Km 30, Zona Rural, Frutal-MG, Caixa Postal 4
Email: rrezende@usinacerradao.com.br
Website: https://www.usinacerradao.com.br/

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://www.iadb.org/en/access-information/information-request

ACCOUNTABILITY MECHANISM OF IDB / IDB INVEST

The Independent Consultation and Investigation Mechanism (MICI) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an Inter-American Development Bank (IDB) or Inter-American Investment Corporation (IDB Invest)-funded project. If you submit a complaint to MICI, they may assist you in addressing the problems you raised through a dispute-resolution process with those implementing the project and/or through an investigation to assess whether the IDB or IDB Invest is following its own policies for preventing or mitigating harm to people or the environment. You can submit a complaint by sending an email to MICI@iadb.org. You can learn more about the MICI and how to file a complaint at http://www.iadb.org/en/mici/mici,1752.html (in English) or http://www.iadb.org/es/mici/mici,1752.html (Spanish).

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