The financing includes a term loan facility of up to US$1.225m to be advanced by the International Finance Corporation (IFC) and IDB Invest under their A/B loan program. JP Morgan, BBVA, Credit Agricole, HSBC, Banco Santander, Bank of America, Bank of China, and China Construction Bank joined as participants.

The IFC brought in a US$350m syndicated loan and provided a US$250m ticket, while IDB Invest syndicated US$375m and came in with a US$250m ticket. The IDB deal has a term of up to ten years with five years grace.

The deal also features a US$970m export credit agency covered term loan facility. JP Morgan was global coordinator, with Banco Santander, HSBC, and Credit Agricole coming in as joint mandated lead arrangers and lenders, supported with a guarantee from Finnish ECA Finnvera.

The credit facilities include environmental, social, and governance provisions, aligning with IFC’s Performance Standards on Environmental & Social Sustainability and the World Bank Guidelines on environmental, health, and safety matters applicable to the project. Simpson Thacher advised Arauco.

Earlier this year, Arauco priced a US$500m sustainable bond at 6.18% in part to finance Sucuriu. JP Morgan, Scotiabank, Santander and Itau BBA were joint bookrunners and global coordinators, with BNP Paribas, BBVA, and MUFG bookrunners. The 7.1-year bond was rated BBB–/Baa3/BBB by S&P/Moody’s/Fitch. The principal will be paid at maturity, while interest payments will be made on a semi-annual basis.

Arauco is a privately held company fully owned by Empresas Copec, a Chilean conglomerate with operations in energy and natural resources. Copec is indirectly controlled by the Angelini family, which holds a combined 45.3% stake through various entities. Other shareholders include the Matte Group, free float shareholders on the public exchange, pension funds, and other private investors.