World Bank to invest $34.6m to support Brazil fertilizer project

22 September 2011 20:54  [Source: ICIS news]

TORONTO (ICIS)--The World Bank’s International Finance Corporation (IFC) has agreed to invest Canadian dollar (C$) 33.6m ($34.6m) in Toronto-listed MBAC Fertilizer to support a single superphosphate (SSP) project in Brazil, MBAC said on Thursday.

In a filing, MBAC said the IFC will acquire 10.83m of its common shares, at a price of C$3.10/share – equivalent to about 10% of MBAC’s outstanding common shares. The deal is expected to close by 27 September.

The proceeds from IFC's investment will be used by MBAC to develop its Itafos-Arraias SSP project in Brazil.

According to MBAC’s website, the project would have an SSP capacity of 500,000 tonnes/year in a first phase, with start-up targeted for as early as 2012. MBAC is also looking at a second-phase that could double production by around 2015.

MBAC’s shares traded unchanged at C$2.90/share in Toronto at 15:00 Eastern Standard Time (20:00 GMT).

Earlier this year, the IFC took a stake in Canadian fertilizer firm Allana to help develop a potash project in Ethiopia.

As part of the World Bank, the IFC helps finance private sector projects in developing countries.

($1 = C$0.97)

For more on fertilizers, visit ICIS Fertilizers

By: Stefan Baumgarten
+1 713 525 2653

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