Sao Martinho is listed in Brazilian stock exchange B3 under the Novo Mercado segment. The Company’s majority shareholders and sponsors are the Ometto family. 

 The proposed investment consists of a US$90 million A loan financing package to Sao Martinho, including a Green Loan tranche. The proceeds of the IFC loan will be used by Sao Martinho to carry out its investment program including (i) an expansion of bagasse-based cogeneration capacity, including the installation of a new boiler that will improve electricity to sugar cane ratios and (ii) sugarcane re-planting and crop treatment capex.

 São Martinho is headquartered in the city of Pradópolis, state of Sao Paulo, where it operates the Sao Martinho sugar and ethanol mill. The Company also operates two other mills in the State of Sao Paulo and one distillery in the state of Goias. 

 The Company is listed in the Brazilian stock exchange B3 in the Novo Mercado segment. As such, Sao Martinho follows strict corporate governance policies including, among others, with respect to disclosure, Board of Directors composition, protection of minority shareholders and shares offering procedures.

This Project has been classified as Category B according to IFC’s 2012 E&S Sustainability Policy. The Project’s E&S risks and impacts are associated with existing sugar, ethanol and energy production activities in Brazil. Key E&S risks and impacts from these activities are: biodiversity loss and set asides (compliance with Brazilian Legal Reservation and Permanent Protected Areas requirements); labor issues regarding workers in the sugarcane plantations (within the company’s own operations and those of its third-party suppliers); wastewater (vinasse) treatment and discharge; air emissions from boilers; safe working conditions and health (employees and communities) issues related to agrichemical exposure; OHS risk prevention and management; life and fire safety; neighbouring and community engagement. These risks and impacts can be readily addressed through well-established mitigation measures. These measures are based on the General WBG EHs Guidelines and Sector-specific EHS Guidelines (Annual Crop production and Sugar Manufacturing).