Randoncorp, a Brazilian multinational reference in mobility solutions, signed a financing agreement with the International Finance Corporation, the largest global development institution focused on the private sector in emerging markets and which is part of the World Bank Group. In total, R$500 million will be raised through this operation, made official this Wednesday, February 28, with the presence of leaders from both institutions, in Caxias do Sul (RS).
The value will be divided equally between the Assembler and Movement Control verticals, which will use part of this resource in sustainable initiatives. The Montadora concentrates the production operations of semi-trailers and railway cars under the Randon brand; and the Movement Control vertical concentrates Frasle Mobility’s auto parts production operations. “These are resources for projects already underway and new actions, aligned with the Company’s sustainability purpose, which involves initiatives such as the development of eco-friendly products and the expansion of the use of energy from renewable sources”, explains the CEO of Randoncorp and President and CEO of Frasle Mobility, Sérgio L. Carvalho.
Green Caldera
Among the main actions that will benefit from the resources is the project called “Caldeira Verde”, an initiative that consists of the construction of a new boiler powered by biomass, at the Frasle Mobility manufacturing unit in Caxias do Sul. This equipment will reduce the levels of consumption of fossil fuels such as natural gas, currently used. The project has the potential to reduce Frasle Mobility’s greenhouse gas emissions by 60% – which is equivalent to a 20% reduction in Randoncorp’s consolidated emissions.
The financing payment period is up to nine years, with a grace period of two years before amortization begins. The funding is considered a Sustainability-Linked Loan as it is linked to compliance with a sustainability performance indicator. “This is the first sustainable financing we have raised and is related to the Company’s public ESG commitment to reduce 40% of greenhouse gas emissions, in scopes 1 and 2, by 2030. Achieving the target will bring a benefit of interest discount from 2026”, explains Randoncorp’s CFO, Paulo Prignolato.
“The transport sector is one of the main emitters of greenhouse gases in Brazil. IFC’s investment in Randoncorp will help the country’s strategy to reduce the consumption of fossil fuels and boost technological innovation to increase efficiency in the sector. We hope that this financing will encourage sustainable practices in the Brazilian private sector”, says Carlos Leiria Pinto, IFC general manager for Brazil.
“This operation reinforces our business strategy and contributes, significantly, to greater financial solidity of the Company, and aims not only to mitigate environmental impacts of our activities and products, but, mainly, to promote sustainable economic development”, highlights the President from Randoncorp, Daniel Randon.
Randoncorp, a Brazilian multinational reference in mobility solutions, signed a financing agreement with the International Finance Corporation, the largest global development institution focused on the private sector in emerging markets and which is part of the World Bank Group. In total, R$500 million will be raised through this operation, made official this Wednesday, February 28, with the presence of leaders from both institutions, in Caxias do Sul (RS).
The value will be divided equally between the Assembler and Movement Control verticals, which will use part of this resource in sustainable initiatives. The Montadora concentrates the production operations of semi-trailers and railway cars under the Randon brand; and the Movement Control vertical concentrates Frasle Mobility’s auto parts production operations. “These are resources for projects already underway and new actions, aligned with the Company’s sustainability purpose, which involves initiatives such as the development of eco-friendly products and the expansion of the use of energy from renewable sources”, explains the CEO of Randoncorp and President and CEO of Frasle Mobility, Sérgio L. Carvalho.
Green Caldera
Among the main actions that will benefit from the resources is the project called “Caldeira Verde”, an initiative that consists of the construction of a new boiler powered by biomass, at the Frasle Mobility manufacturing unit in Caxias do Sul. This equipment will reduce the levels of consumption of fossil fuels such as natural gas, currently used. The project has the potential to reduce Frasle Mobility’s greenhouse gas emissions by 60% – which is equivalent to a 20% reduction in Randoncorp’s consolidated emissions.
The financing payment period is up to nine years, with a grace period of two years before amortization begins. The funding is considered a Sustainability-Linked Loan as it is linked to compliance with a sustainability performance indicator. “This is the first sustainable financing we have raised and is related to the Company’s public ESG commitment to reduce 40% of greenhouse gas emissions, in scopes 1 and 2, by 2030. Achieving the target will bring a benefit of interest discount from 2026”, explains Randoncorp’s CFO, Paulo Prignolato.
“The transport sector is one of the main emitters of greenhouse gases in Brazil. IFC’s investment in Randoncorp will help the country’s strategy to reduce the consumption of fossil fuels and boost technological innovation to increase efficiency in the sector. We hope that this financing will encourage sustainable practices in the Brazilian private sector”, says Carlos Leiria Pinto, IFC general manager for Brazil.
“This operation reinforces our business strategy and contributes, significantly, to greater financial solidity of the Company, and aims not only to mitigate environmental impacts of our activities and products, but, mainly, to promote sustainable economic development”, highlights the President from Randoncorp, Daniel Randon.
