• The operation will finance key infrastructure for the construction of the company’s industrial park and its future pulp mill

ASUNCIÓN — IDB Invest has approved financing of up to $165 million for Paracel S.A. to support the development of an industrial hub for sustainable forestry in Paraguay. The project is expected to generate approximately 7,000 direct and indirect jobs.

The financing, which will enable construction of essential infrastructure, is a key step in creating the conditions to consolidate Paraguay’s forestry value chain and facilitate development of Paracel’s pulp mill, as well as new industries linked to the wood sector.

Announced at in Asunción, the operation reaffirms IDB Invest’s commitment to Paraguay’s growth and to strengthening the private sector as a driver of economic development in Latin America and the Caribbean. The financing combines IDB Invest’s own resources with capital mobilized from third parties, reflecting strong interest from international investors in the project.

“Projects like Paracel demonstrate the private sector’s potential to drive growth, employment, and regional development in Paraguay,” said IDB Group President Ilan Goldfajn. “Through IDB Invest, the IDB Group helps create the conditions and supports investments that strengthen the country’s productive base and open new development opportunities.”
“This project reflects Paraguay’s potential to attract large‑scale industrial investments,” said IDB Invest CEO James Scriven. “Our financing will support the development of key infrastructure for this forestry industrial hub and help mobilize private capital toward one of the most significant investments in the country’s history.”

“The approval of this financing represents a critical step for the development of the pulp mill and industrial hub we are building in Paraguay,” said Paracel Chairman Per Olofsson. “After developing a broad, competitive forestry base certified under international standards, with more than 90 million trees planted, Paracel has established itself as a benchmark in sustainable forest management. IDB Invest’s support now provides the resources needed to move forward with the pulp mill, while further consolidating the forestry value chain in the country – with a direct impact on job creation, attraction of new industrial investments, and the sustainable development of northern Paraguay.”

The approved financing will enable a phased approach to the construction of the forestry industrial hub.

The project includes the construction of key assets, such as a port and river terminal, electricity transmission lines, access roads, and logistics infrastructure. These investments will improve regional connectivity, reduce logistics costs, and facilitate the establishment of new industrial activities linked to the forestry sector.

The project will encourage economic development in the northern part of the country. Located in the department of Concepción — a region with high productive potential and abundant forestry resources — the industrial hub will leverage Paraguay’s competitive advantages, including access to energy, competitive logistics, and the Free Trade Zone regime. It will strengthen the competitiveness of Paraguay’s forestry sector and expand its integration into regional and international markets.

The operation adheres to the environmental, social, and governance standards that Paracel consistently implements, aligned with international best practices. IDB Invest will support the project through an Environmental and Social Action Plan, along with initiatives focused on institutional strengthening, energy efficiency, and resilience, reinforcing an integrated sustainability approach from the outset.

This financing is an example of IDB Invest’s “Originate-to-share” business model, which mobilizes private capital toward projects that promote economic growth, generate formal employment, and strengthen Paraguay’s integration into regional and global value chains through the private sector.

About IDB Invest 

IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $22 billion in assets under management and more than 440 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries. Visit our website: www.idbinvest.org/en 

About Paracel

Paracel is Paraguay’s first forestry‑based pulp company, created to generate a positive impact on society. As the largest private investment in the country’s history, the company owns more than 203,000 hectares of land and is led by three partners: Grupo Zapag, Heinzel Holding GmbH, and Girindus Investments, all committed to sustainable development. Visit our website: https://www.paracel.com.py/