Business
BNDES approves project debt financing for the Itafós Project to be provided on an on-lending basis by Banco Itaú BBA
TORONTO, Oct. 14, 2011 /CNW/ - MBAC Fertilizer Corp. ("MBAC" or the "Company") (TSX:MBC) (OT...
About this update from Itafos Inc
[{"type":"text","content":"\n\n\n\n\n\nTORONTO, Oct. 14, 2011 /CNW/ - MBAC Fertilizer Corp. (\"MBAC\" or the \"Company\") (TSX:MBC) (OTCQX:MBCFF) is very pleased to announce that it has received BNDES (Banco Nacional de Desenvolvimento Econômico e Social) Board of Directors approval in respect of a project financing facility\n (the \"Itaú BBA/BNDES Facility\") for the Itafós-Arraias SSP Project (the\n \"Itafós Project\") which will be provided on an on-lending basis by Itaú\n BBA S.A with BNDES funds. The Itaú BBA/BNDES Facility is comprised of a\n line of credit in the amount of approximately R$11.5 million, which has\n already been advanced to the Company, and a R$193.5 million line of\n credit, for a total of R$205 million (approximately US$114 million).\n Itaú BBA also acted as financial advisor for the Itaú BBA/BNDES\n Facility. The Company expects loan disbursements to begin immediately\n after the execution of transaction documents and the satisfaction of\n customary conditions precedent.  Transaction documents are expected to\n be executed within 60 days.\n\n\nIn addition to the proposed Itaú BBA/BNDES Facility, IFC (a member of\n the World Bank Group) has received final board approval for a US$40\n million project financing facility (the \"IFC Debt Facility\").\n\n\nItaú BBA is the major Brazilian private bank and has expertise with\n BNDES financing structures. BNDES, the Brazilian Development Bank, is\n the main financing agent for development in Brazil. Since its\n foundation, in 1952, BNDES has played a fundamental role in stimulating\n the expansion of industry and infrastructure in the country as lender\n and also through its partnerships with commercial banks.\n\n\nAntenor Silva, President and CEO of MBAC stated; \"The final BNDES board approval represents a significant milestone for\n the Itafós Project.  We are very pleased to have Itaú BBA, BNDES and\n IFC as financial partners in this exciting project.  The fundamentals\n for this project have continued to strengthen and we currently see a\n very robust market for Single Super Phosphate in our target markets\n with recent pricing in the US$400 per tonne range.\"\n\n\nUpdate on Progress at the Itafós-Arraias SSP Project\n\n\nMBAC continues to advance the Itafós Project.  The Company has ordered\n a...