48333 - SMTO Biomethane

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Summary of Investment Information

Project Number

48333

Company Name

SAO MARTINHO S/A.

Date SPI Disclosed

Aug 2, 2024

Country

Brazil

Region

Latin America and the Caribbean

Projected Board Date

Sep 6, 2024

Environmental Category

B - Limited

Status

Active

Last Updated Date

Dec 26, 2024

Department

Regional Industry MAS LAC & EUR

Industry

Agribusiness and Forestry

Previous Events

Approved : Nov 14, 2024
Signed : Dec 10, 2024
Invested : Dec 24, 2024

Sector

Sugarcane and Beets

Project Description

The proposed IFC investment consists of an A loan financing package to Sao Martinho S.A. (Sao Martinho). Founded in the 1930’s by the Ometto family, Sao Martinho is a sugar, ethanol and renewable energy producer in Brazil. Sao Martinho currently operates three sugar mills in the state of Sao Paulo and one distillery in the state of Goias. .

Associated Advisory Engagement

IFC may provide advisory services to the Company focused on reducing greenhouse gas emissions.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	165.0
Equity

Development Impact

IFC expects the Project to have environmental effects by contributing to climate mitigation through production of biomethane. The Project will also generate economy wide impact through job creation and value addition. Beyond the Project, IFC anticipates that the investment will contribute to environmental sustainability by demonstrating the commercial feasibility of producing biomethane from vinasse.

E&S Category Rationale / Risks and Mitigation

This is a Category B project according to IFC’s 2012 Policy on Environmental and Social Sustainability due to limited and site-specific E&S risks and impacts associated with the construction and operation of the biomethane plant and the renewal of sugarcane plantation at Santa Cruz mill. These can be avoided or mitigated by adhering to recognized Good International Industry Practices (GIIPs). Key E&S risks and issues associated with this project include: (i) labor / Occupational Health and Safety (OHS) issues regarding workers in the biomethane plant and sugarcane plantations (within the company’s own operations and those of its third-party suppliers), (ii) contractors’ labor and OHS risks, (iii) air emissions, including pollution risks from gas emissions, ambient air quality, odor, noise, solid waste, wastewater, and hazardous material management; (iv) community health and safety, and (v) stakeholders’ engagement.

Contacts

For Inquiries About the Project, Contact

São Martinho S.A.
Guilherme Izzo Lauand
Strategic Treasury Analyst
+55 11 2105 4100
Guilherme.Lauand@saomartinho.com.br
Rua Geraldo Flausino Gomes, 61 - 13 andar - Sao Paulo - SP - Brasil - 04575-060

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Local Access of Project Documentation

Address: Rua Geraldo Flausino Gomes, 61 - 13 andar - Sao Paulo - SP - Brasil - 04575-060

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. Its purpose is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

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