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| G Brasil Participacoes S.A. |
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| Summary of Proposed Investment |
| This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 25951 |
| Company name | G Brasil Participacoes S.A. |
| Country | Brazil |
| Sector | Industrial & Consumer Products |
| Environmental category | B |
| Department | Global Manufacturing & Services |
| Status | Pending Approval |
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| Date SPI disclosed | March 20, 2008 |
| Projected board date | May 30, 2008 |
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| View Environmental & Social Review Summary (ESRS), click here |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
| Grupo Brasil is a relatively new automotive components manufacturer established since 2000. It main products are forged, cast and pipe based components for light and heavy vehicles, off-road vehicles, wind turbines and motor cycles. The project consists of the expansion and modernization of the group’s production facilities. |
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| Project sponsor and major shareholders of project company |
| The main sponsor with 93.95% beneficial ownership of Grupo Brasil is Sebastião Luis Pereira de Lima, a Brazilian national. |
| Total project cost and amount and nature of IFC's investment |
| The total project cost is estimated at $222.9 million. The proposed IFC investment is $35 million consisting of a $25 million A loan and a $10 million equity or quasi-equity investment for IFC’s own account. |
| Location of project and description of site |
| The investments will be made at all of Grupo Brasil’s existing production factories located in Jundiaí, Campinas and Guarulhos (São Paulo); Barra do Piraí (Rio de Janiero); and Matozinhos (Minas Gerias). |
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| Anticipated development impact of the project |
| The anticipated development impacts are strengthening of supply chains, transfer of knowledge to Brazil, benefit to employees through job security and to government through taxes. |
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| IFC's expected development contribution |
| IFC will provide appropriately priced long-term funding for the project, which is not readily available to the company locally, facilitate greater access for the company to financial markets through its presence, and help the company to implement environmental improvements. |
| Environmental and social issues - Category B |
This is a Category B project, according to IFC’s Procedure for environmental and Social Review of projects because of a limited number of specific environmental , health and safety and social/community impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines and design criteria.
Key issues at the plants in Barra do Piraí and Matozinhos are lack of an Environmental Social Health and Safety system, solid waste disposal and storage, fire fighting capacity, and employee working environment. |
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| For inquiries about the project, contact: |
Antonio Haddad, Chief Operations Officer
Av. Major Sylvio de Magalhães Padilha, 5200,
Edif. Philadelphia, Morumbi, 05677-000
São Paulo, SP, Brazil
Telephone: 55-11-3759-8666
Fax 55-11-3759-8718 |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
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