SGB, Inc. (SG Biofuels), an energy crop company delivering high performance bioenergy solutions for the renewable fuel, biomass and chemical markets, has signed a mandate letter with the Inter-American Development Bank (IDB) for the debt financing of its 25,000 acre Jatropha bioenergy project in Guatemala.
The project cost is estimated at approximately US$76 million.
The mandate letter enables the bank and SGB to proceed with financial, technical and environmental due diligence on a project that aims to produce 6.2 million gallons of plant oil and 640,000 metric tons of biomass per year while stimulating rural economic and social development, including the creation of more than 1,000 new jobs, improved infrastructure and health and education programs.
IDB will consider participating in the financing subject to its satisfactory analysis of the project.
It is anticipated that the financing package would consist of an A loan of up to US$30.6 million, to be funded by IDB and complementary financing through a B-Loan or a co-loan in a yet to be defined amount.