São Paulo – The International Finance Corporation (IFC), the World Bank’s private sector arm, and the Brazilian meat packing company Minerva have reached an agreement last Monday evening (9th) for the financial institution to acquire a stake of up to 2.99% in the latter. According to statements released by the two institutions this Tuesday (10th), the IFC will also loan R$ 137.7 million (US$ 59.5 million) to Minerva, to be repaid in half-yearly instalments beginning in October 2015.
According to a statement from the IFC, the institution will invest a total of R$ 184.6 million (US$ 79.6 million), which will be used for funding the company’s expansion in Brazil, Paraguay, Uruguay and “possibly” Colombia. “Minerva’s expansion entails the creation of jobs, mostly in rural communities,” the document reads.
The statement released by Minerva claims that IFC’s investment will help the company to further improve the social and environmental standards it already observes, and to implement a plan that will allow it to be more sustainable.
Minerva is Brazil’s second leading exporter of beef. Presently, its products are sold in over 100 countries. Of the company’s R$ 1.4 billion (US$ 605 million) revenues in quarter two this year, R$ 930 million (US$ 402 million) originated from exports. Sales to Arab countries accounted for 35% of the company’s total exports during the period.
*Translated by Gabriel Pomerancblum
