LD Celulose S.A.

repaid

The proposed transaction consists of a senior secured A/B Loan of up to U$300 million[1]to be provided to LD Celulose S.A. (“LD Celulose”), consisting on: (i) an A Loan of up to US$200 million to be funded by IDB and IDB Invest in a proportion to be determine with a tenor of up to ten years, including a 42-months grace period; (ii) an IDB fund Loan of up to US$50 million to be funded by the China Co-Financing Fund for Latin America and the Caribbean with a tenor of up to ten years, including a 42-months grace period; and (iii) a B Loans of up to US$50 million to be funded by international financial institutions with a tenor of up to seven years, including a 42-months grace period (all together, the "Loan"). The Loan will finance part of the construction of an integrated US$1.5 billion industrial plant that will produce 450,000 ton per year of dissolving wood pulp (“DWP”) that will be exported and used to manufacture textiles and non-woven fabrics, to be carried out by LD Celulose, a joint venture owned by the Austrian group Lenzing and by the Brazilian group Duratex (“the Project”). The Project will be strategically located near the cities of Uberlândia and Araguari in the state of Minas Gerais, Brazil, where soil and climate ensure ideal conditions to grow eucalyptus. The Project includes the construction of a power co-generation plant that will produce 132MW of electricity per year, of which 63.5MW will be consumed at the pulp mill, being the rest available for sale to the market. Construction phase is planned to start in early April 2020 and last for 28 months.Founded in 1938 and headquartered in Austria, Lenzing is a world market leader in the production of wood-based cellulose fibers. It has operations in 17 locations and employs over 6,800 worldwide. It has two DWP plants with a total production capacity of 600,000 ton/year and seven factories to produce fiber for various applications, with a total capacity of over 1,000,000 tons.Founded in 1951 and headquartered in São Paulo, Brazil, Duratex engages in the manufacture of wood panels, sanitary ware and metals and ceramic tiles. Duratex ranks within the top 10 manufacturers of wooden panels globally and the largest player in the Southern Hemisphere, with 16 industrial units and seven forestal units located in Brazil, and three industrial units in Colombia. Duratex exports to over 50 countries and employs over 11,000 employees.[1]In the event that the Borrower and its shareholders do not procure sufficient ECA financing (i.e., less than the expected amount of USD 300 million from Export Credit Agencies), IDB Invest is willing to consider increasing its financing package to up to US$500 million by increasing the B Loan amount and on terms to be agreed with the Shareholders.****************************************************************************************************************Amendment on March 24, 2020:  Financing Request has changed,  see new information below.**********************************************************************************************************Up to US$500 million from the IDB Group, under a total Loan of up to US$1 billion jointly led and co-syndicated with IFC.The proposed transaction consists of a senior secured A/B Loan of up to U$500 million to be provided to LD Celulose S.A. (“LD Celulose”), consisting on: (i) an A Loan of up to US$200 million to be jointly funded by IDB and IDB Invest with a tenor of up to eleven years, including a 42-months grace period; (ii) an IDB administered loan of up to US$50 million to be funded by the China Co-Financing Fund for Latin America and the Caribbean with a tenor of up to eleven years, including a 42-months grace period; and (iii) B Loans of up to US$250 million to be funded by international financial institutions with a tenor of up to nine years, including a 42-months grace period (all together, the "Loan"). The Loan will finance part of the construction of an integrated US$1.8 billion industrial plant that will produce 500,000 tons per year of dissolving wood pulp (“DWP”) that will be exported and used to manufacture textiles and non-woven fabrics. The Project will be strategically located near the cities of Uberlândia and Araguari in the state of Minas Gerais, Brazil, where soil and climate ensure ideal conditions to grow eucalyptus. The Project includes the construction of a power co-generation plant with nominal capacity of 144MW/h of electricity, making LD Celulose a net exporter of energy. The construction phase is planned to start in early April 2020 and last for 28 months. LD Celulose is a joint venture owned by the Austrian group Lenzing and by the Brazilian group Duratex (“the Project”).