40.33 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	40.33
Equity

* These investment figures are indicative

IFC expects the Project to have climate mitigation effects through forest restoration, afforestation, and sustainable forest management. Beyond the Project, IFC anticipates contributions to promote environmental sustainability by financing among the largest initiatives to restore and preserve native forest in the ecologically important Cerrado biome in Brazil.

Financial Additionality: (i) Financing structure: Availability period and grace period, which is not readily available in the market and aligns with the Strategy’s timeline to commit the equity funding, close the property acquisitions, and match the cash flow generation cycle. (ii) Resource Mobilization: Tranche from third-party investors managed by IFC, which would not be available to the Strategy without IFC participation, diversifying its funding sources. (iii) Innovative Financing Structure: The loan will be structured in compliance with Sustainability-Linked Loan principles, in which the interest rate would vary in accordance with ESG KPIs Non-financial Additionality (i) Standard setting: IFC will support the Strategy in the adoption of good practice E&S principles in line with IFC's Performance Standards which will help the Strategy to strengthen the identification and mitigation of E&S risks inside the farm (e.g., health and safety of workers, management of hazardous materials) and in its area of influence (e.g., gender based violence and harassment (GBVH), stakeholder engagement) and ensure its operations meet best-in-class practices in line with expectations of its investors. (ii) Knowledge, innovation, and capacity building: TIG will benefit from IFC's biodiversity risk management through the application of IFC PS6 to provide evidence of gains in biodiversity values in the areas managed by the Strategy. Applying IFC´s Performance Standards in this innovative TIMO represents a unique opportunity to set up higher standards across the entire industry.

This is a Category B project according to IFC's Policy on Environment and Social Sustainability (2012). Based on information reviewed by IFC, the proposed project will have limited adverse E&S impacts that are few, site specific, largely reversible and readily addressed through existing mitigation measures and good international industry practices (GIIP). Key E&S risks and issues for this investment include the adequacy of the company’s (i) E&S due diligence (ESDD) to avoid the acquisition of lands recently converted or subject to claims by IP or local communities; (ii) E&S management system (ESMS) to assess and mitigate E&S risks and impacts from regular plantation operations (e.g., impact on water resources due to soil preparation, use of agrochemicals, and increased evapotranspiration) and emergency situations (e.g., accidental forest fires); (iii) contractor management system to ensure fair and safe working conditions for contractors’ workers; and (iv) stakeholder engagement process to promptly identify and resolve inquiries, concerns and complaints by stakeholders.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.