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Multilateral institutions lead $1.1 bln financing to new Brazil pulp mill

SAO PAULO, June 2 (Reuters) - IFC, a member of the World Bank group, and IDB Invest, with the Inter-American Development Bank, are leading a $1.1 billion credit to finance a new pulp plant to be built in the state of Minas Gerais, IFC said on a statement on Tuesday.

The financing will go to LD Celulose S.A., a joint venture between Lenzing AG and Duratex S.A to build one of the largest dissolving wood pulp plants in the world, in Minas Gerais state.

Commercial banks and Finnish export agency Finnvera are also part of the syndicate. The joint venture will build between 2020 and 2022 a dissolving wood pulp mill and a cogeneration plant with a capacity of 144 megawatts.

Reporting by Tatiana Bautzer

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