The International Finance Corporation (IFC), a member of the World Bank Group, has announced a $40 million financing package for Arboreal, a Uruguayan company that transforms wood from certified forests into industrial and construction products. The investment includes $20 million from IFC's own account and an additional $20 million mobilized from ILX Fund, and will support the production of thermally modified wood while strengthening circular economy practices through biomass briquettes.
Arboreal holds FSC certification, which ensures traceability of wood from forest to final product and confirms sourcing from sustainably managed forests that include biodiversity conservation. Beyond financing, IFC will provide strategic advisory services to support the regional market for sustainable construction solutions, including demand analysis, regulatory frameworks, and building standards.
The project will be implemented between 2026 and 2028 and is expected to create a 15% increase in direct employment along with approximately 185 additional temporary and indirect jobs in transport, logistics, maintenance, and harvesting. Matías Abergo, President and Co-founder of Arboreal, stated that the investment allows the company to expand industrial capacity in Uruguay and develop higher value-added wood solutions.
