Sigma Lithium Corporation has received a binding commitment from Brazil’s National Bank for Economic and Social Development (BNDES) for a BRL 487 million (approximately USD 98 million) development loan. The 16-year loan will fully fund the construction of Sigma’s second carbon-neutral lithium production facility in Brazil.
Key details of the loan include:
- 16-year repayment term
- 7.45% annual interest rate
- 18-month grace period followed by a 174-month amortization period
- No assets required as collateral; secured by a letter of credit from a BNDES-registered financial institution
The loan will finance the construction of Sigma’s second Greentech Carbon Neutral plant, which is expected to double the company’s lithium concentrate production capacity from 270,000 tons to approximately 520,000 tons per year. Sigma has already started construction, with completion and commissioning targeted for the summer of 2025.
BNDES said the loan is part of its strategy to support the development of a sustainable industrial lithium supply chain in Brazil. The financing represents nearly 99% of Sigma’s submitted BRL 492 million investment budget for the plant.
Sigma Lithium CEO Ana Cabral noted that the loan “crowns more than 10 years of relentless execution” by the company to establish leadership in carbon-neutral, sustainable lithium production. She added that BNDES’ support will allow Sigma to further expand its socio-economic impact in Brazil’s “Lithium Valley” region.
Closing of the loan remains subject to Sigma providing satisfactory letters of credit and meeting customary conditions for a development loan of this nature. Sigma plans to repay the majority of its existing unused short-term trade finance lines from its current cash position.
Source: PR Newswire
