The FINANCIAL – IFC, a member of the World Bank Group, will provide a US$40 million loan to Pandurata Alimentos Ltda, best known for its brand Bauducco, one of the leading baked products companies in Brazil. By supporting Bauducco’s investment program, IFC will help promote the growth of the Brazilian food sector, which is critical for the country’s economic activity, trade balance and employment generation.
Bauducco is currently carrying out an investment program that includes the capacity expansion and modernization of its plants. IFC’s eight-year financing will help Bauducco to accomplish that plan, investing in new technologies and innovative products, and to strengthen its capital structure. It will also support the growth of the food and beverages sector, which accounts for 9% of Brazil’s Gross Domestic Product (GDP) and employs over 1.7 million people, according to IFC.
“We have a long-standing partnership with IFC that dates back to 2007,” said Leandro Gomes, Bauducco CFO. “This investment will help us implement the expansion program planned for the next years under competitive financial conditions, and represents a vote of confidence in our strategy and capacity to grow despite a challenging macroeconomic situation.”
“The agribusiness sector, with its entire supply chain, is a strategic priority for IFC because of its potential for promoting development and poverty reduction”, said Luiz Daniel de Campos, Principal Investment Officer, Agribusiness Department, IFC Brazil. “This is our third transaction with Bauducco; we are pleased to continue to support the company’s investment plans, which will contribute to the creation of skilled jobs, and expand access to quality food products for the Brazilian population.
IFC promotes inclusive economic development in agribusiness by supporting its entire value chain, which includes Food & Beverage businesses. In the fiscal year ended June 2015, IFC invested $3.2 billion across the agribusiness supply chain – from farm to retail – to help boost production, increase liquidity, improve logistics and distribution, and expand access to credit for small farmers. In that same fiscal year, IFC’s overall agribusiness portfolio stood at $5.2 billion. In Brazil, IFC invested $530 million in the agribusiness and food sector in the last five years.
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