IFC leads $70M financing to expand Cocal Group’s ethanol and biogas production

In Brazil, International Finance Corporation (IFC) is supporting a new project in Brazil to strengthen the diversification of the country’s energy matrix. The $70 million financing for the Cocal Group will expand the company’s ethanol and biogas production and will contribute to the renewal of sugarcane plantations, with agricultural and climatic techniques that will be conducted in real time and with excellent accuracy. 

The financing package consists of $40 million of IFC’s own resources and $30 million mobilized with two other financial institutions, Banco Itaú BBA and Rabobank. The IFC loan will support Grupo Cocal’s investment program estimated at $92 million, which includes the construction of the biogas production unit in the municipality of Narandiba (SP), the renovation of 27 thousand hectares of sugar cane and the replacement of agricultural machinery and equipment. The resources of this line from IFC will be used specifically in the construction of the biogas production plant and in agricultural practices that have vertical gains in production, qualitative gains in raw material and use of technology and precision agriculture.