The International Finance Corporation (IFC) will provide BRL 150 million (USD 45.7m/EUR 41.6m) of long-term financing to Brazilian ethanol producer CerradinhoBio to support the company's expansion plan.

The 10-year financing will help CerradinhoBio increase its production of bioethanol fuel by 28% and more than double its capacity to generate bagasse-based electricity to be used for its own needs, with the surplus supplied to the national grid, IFC said on Monday.

The development institution noted that the sugar and ethanol industry is important for Brazil's economy and jobs. The country is the world's largest sugarcane producer and the second largest ethanol producer. "Agribusiness is a strategic priority for IFC because of its potential for development and poverty reduction," commented Luiz Daniel de Campos of IFC Brazil. IFC's investment also supports the expansion of renewable energy production in Brazil.

CerradinhoBio operates in the state of Goias. The business has a crushing capacity of 5.3 million tonnes of sugarcane per year and employs 3,800 people, directly and indirectly.