Arboreal Timber

pending

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.