BTG TIMO Debt

active

The BTG Pactual Timberland Investment Group (‘TIG’ or the ‘Company’), a subsidiary of BTG Pactual Group (the ‘Sponsor’), manages over 1.2 million hectares (ha) of land in North and South America. TIG is currently seeking to mobilize capital for its Latin American reforestation strategy, targeting the acquisition of 280,000 ha of deforested and degraded land in South America (the ‘Strategy’). The Strategy’s approach involves planting fast-growing tree species on half of the acquired land, with the remaining half dedicated to the protection and restoration of native vegetation. Income sources will include the production of FSC-certified wood and carbon credits. As part of its exit strategy, the Strategy aims to ensure the permanent conservation of the protected and restored native vegetation. This will be accomplished by formally registering these areas as legally protected in property titles.IFC’s proposed investment (the ‘Project’) consists of a loan of up to US$50 million to finance the Strategy's initial acquisition in Brazil, including land acquisition, silvicultural activities such as planting of sustainable eucalyptus, and conservation and restoration efforts in the property. This acquisition encompasses a ~24,000-hectare farm, Engano Farm, situated in Mato Grosso do Sul (MS) within the Municipalities of Figuerao, Camapua, and Costa Rica (https://maps.app.goo.gl/3ajuDJRLZqks5MnV6). TIG’s properties in Brazil, including the Strategy’s, are managed by TTG Brazil (TTG), a fully owned subsidiary of TIG. TTG operates with approximately 65 employees located in Sao Paulo, Minas Gerais, Parana, and Mato Grosso do Sul (MS). TTG is responsible for overseeing the administration of TIG's forestry assets while on-the-ground activities are outsourced to contractors. This includes various tasks such as silviculture, road construction, patrolling, fire detection and control, management of farm facilities, and EHS inspections. Presently, around 100 contracted workers are actively involved in operations at the Engano Farm, with an expected peak workforce of approximately 220 in 2024. Only one TTG employee is permanently stationed at the Engano Farm. After the plantation phase is concluded, a smaller team will remain for ongoing maintenance and protection. Once the tree plantations reach maturity, wood will be sold as stumpage and buyers will be responsible for harvesting and wood transportation.