Chilean wood products maker Masisa said that it has taken out a five-year bilateral loan for up to $35 million from IDB Invest to finance its 2021-23 investment plan and working capital needs.
The loan from IDB Invest, the private sector affiliate of the Inter-American Development Bank, will be tied to environmental, social and governance (ESG) criteria, Masisa said late Monday in a securities filing without providing further details.
IDB Invest said the funds will go toward launching new lines to increase Masisa’s production capacity, as well as to buying equipment and technology to improve production efficiency and maintaining its existing plants. The projects that will be supported by the loan are those that meet certain ESG criteria, including minimizing the environmental and social impacts of Masisa’s operations, protecting water basins and facilitating access to water for poor communities.