World Bank Group member International Finance Corporation (IFC) has acquired 2.93% stake in Brazilian meat packing company Minerva, for BRL46.9m ($20.5m).
IFC is also providing BRL137.7m ($60.3m) in loan to Minerva, which will use the proceeds to fund its expansion plans.
Minerva will use the investment to boost its slaughter and beef processing capacities in South America with focus on Brazil, Uruguay, Paraguay and Colombia, to expand its Brazil's distribution operations through the opening of new distribution centers and to expand processing capacity of its value-added product plant.
With this investment, the company will enhance the traceability of its supply chain through an action plan to address environmental impacts of its regional expansion in support of a more sustainable beef industry in Brazil and the Southern Cone.
Minerva, which holds more than 20% market share, employs over 10,000 people and indirectly supports about 9,000 farmers in Brazil, Paraguay and Uruguay through its supply chain.
IFC will also support Minerva in conducting a study aimed at identifying business risks and opportunities associated with environmental and social issues.