Brazilian Sugar Cane Gets Development Funds

BNDES has agreed to provide BRL226.2m ($116m) to finance Usina de Acucar Santa Terezinha’s sugar cane planting in the Brazilian state of Parana. The loan comes as part of a BNDES program that aims to generate productivity at aging sugar plantations, BNDES says. The program, which has a budget of BRL4bn available until the end of this year, will provide money for companies that want to renovate or plant new sugar cane fields, says a person familiar with the program, which can finance up to 80% of the investment. The maximum tenor of a loan is 6 years, with a maximum grace period of 18 months. No interest rate was available. BNDES will look to approve several projects in the coming months, the person familiar with the program adds.