Empresas Copec’s forestry subsidiary, ARAUCO, reported in a material fact sent to the Financial Market Commission (CMF) that it had secured two loans abroad.

The first is a loan for which several banks have committed to providing up to US$970 million, guaranteed by Finnvera Plc, Finland’s export credit agency. The second is a loan for which the International Finance Corporation (IFC), the Inter-American Investment Corporation (IDB Invest), and a group of banks committed to granting loans for up to US$1.225 billion.

The proceeds from these loans will be used for the construction and operation of the Sucuriú Project pulp mill, located in the town of Inocência, in the state of Mato Grosso do Sul, Brazil. The mill will have a production capacity of approximately 3.5 million tons of softwood pulp per year.

Both loans contain a number of environmental and social commitments, including the environmental, social, and safety performance standards established by the IFC and World Bank Guidelines on environmental, health, and safety matters applicable to the Project.