Cibrafertil

completed

Companhia Brasileira de Fertilizantes (“Cibrafertil,” the “company”, http://www.cibra.com); the Brazilian manufacturer of granulated superphosphate and fertilizers blender headquartered in Salvador, Bahia; is the 5th largest fertilizer company in Brazil, and holds 3% of the market share. In August 2015, Cibrafertil acquired Agroindustrial São Luiz which more than tripled the size of Cibrafertil from 370k tons to 1,200k ton total annual capacity.  The company’s 270,000 ton/year production capacity Single Superphosphate (SSP) manufacturing and packaging plant is located in Bahia.  In addition, it has one rented warehouse and 10 fertilizer blending operations as follows: Candeias, located in Bahia State, has a production capacity of 155,000 tons/year; Sao Francisco do Sul, located in Santa Catarina State, has a production capacity of 330,000 tons/year; Paranaguá I and Paranaguá II, both located in Parana State, have a respective production capacity of 163,000 tons/year and 400,000 tons/year; Sorriso, located in Mato Grosso State, has a production capacity of 200,000 tons/year; Cristalina, located in Goias State, has a production capacity of 200,000 tons/year; and It also has two rented blending operations, in Rondonopolis located in Mato Grosso State, with combined production capacity of 263,000 ton/year.Furthermore, as part of its supply chain, it has two third party operations (tolling operations, to which Cibrafertil provides raw materials, the third party produces the blended products and returns them back to Cibrafertil), one in Rondonopolis, Mato Grosso State; and a second one in Rio Grande, Rio Grande do Sul State.  Finally, it has a rented 50,000-ton warehouse located in Luis Eduardo Magalhaes, Bahia State.  Both the São Francisco do Sul and Paranaguá have communities nearby.  Camaçari operations are located in an industrial site and the remaining operations do not have nearby communities.IFC’s proposed investment includes a corporate loan of up to US$ 40 million. The proceeds of this investment will be used to support the company’s investment program in 2016-2017, including (i) upgrading the existing SSP manufacturing facility at Camacari, Bahia; (ii) upgrading existing blending facilities; (iii) acquiring brownfield blending assets; and (iv) working capital needs.