Arauco: Sucuriú Greenfield Project in Brazil

in implementation

Sucuriú(the "Project") is an integrated development for the construction and operation of a pulp mill located 50 km from the municipality of Inocência, in the state of Mato Grosso do Sul, Brazil. The Project will be executed by Celulosa Arauco y Constitución SA ("Arauco"), a leading Chilean company in forestry and timber products, headquartered in Santiago. The investment planned for the Project is US$4.6 billion to establish one of the largest pulp plants in the world, with an estimated annual production capacity of 3.5 million tons of short fiber pulp. Construction is expected to begin in 2025, with operations beginning in late 2027. The plant will be supplied by 400,000 hectares of sustainable eucalyptus plantations owned by Arauco.The transaction will be structured as an A/B Financing Loan of up to US$500 million, with a term of up to 10 years and a grace period of up to 5 years. The resources will be allocated to construction, specific development of the Project's infrastructure, management of plantations and implementation of renewable energy facilities, promoting sustainability through water reuse, energy efficiency and emissions reduction.