Eldorado Gets BNDES Loan

Paper and pulp producer Eldorado, has been a BRL2.7bn ($1.7bn) loan from Brazilian development bank BNDES. A spokesperson for the bank declines to say what rate the loan pays. Proceeds will be used to finance the construction of a pulp and paper plant in Tres Lagos, in the state of Mato Grosso do Sul. The plant will be completed by the end of 2012 and is expected to be the biggest in the world upon completion. The loan is expected to cover around half of the cost of the first phase of the project, which is expected to cost around BRL5.1bn. The remainder is expected to be financed by credit lines.