Deutsche Bank is providing Brazilian meat processor JBS with a €42mn loan for the import of leather processing equipment from Italy. The loan is being guaranteed by Italian export credit agency Sace.

“JBS will import machineries and services for leather processing. The main supplier will be a number of small and micro companies from the northern and central districts of Italy, particularly from the Arzignano district of tanning, in the province of Vicenza,” a spokesperson for Sace explains to GTR.

Brazil is a key export market for Italy, the spokesperson comments: “With an exposure of €1.5bn, the country is the fifth largest market in the company’s portfolio (…) At the moment there are over 500 enterprises on site controlled by Italian companies, half belonging to manufacturing sector, including Fiat, Pirelli, Telecom Italia, Campari, Ferrero.”

The country will continue to be a solid market, particularly as it intends to invest US$750bn by 2016 – for the upcoming World Cup and the Olympic Games.

“This offers great opportunities for Italian companies in many sectors: mainly in infrastructure, alternative energy source, especially wind power, defense, telecommunications, oil industry, but also luxury and consumer goods,” she adds.

JBS describes itself as the largest processor of protein – beef, chicken, lamb and pork – in the world and, as such, processes a large amount of hides into leather.

The company is the largest Brazilian leather exporter, with 24 leather production facilities in Brazil, as well as facilities in China, the US, Australia, Uruguay, Argentina, South Africa, Mexico and Germany.

The company produces hides in wet blue, semi-finished and finished stages, for the footwear, automotive, furniture and artefacts segments.

Linklaters Milan has assisted Deutsche Bank and Sace on this transaction.