China Co-Financing Fund for Latin America and the Caribbean provides $20 million loan to Arzyz Metals for new aluminum recycling plant (Linked to Project ID#86526)

On May 7, 2020, the private sector institution of the Inter-American Development Bank (IDB) Group, IDB Invest (formerly Inter-American Investment Corporation, or IIC), signed a $66.5 million financial package with Arzyz Metals for the construction and equipment of a new aluminum recycling and alloy production plant. The package consisted of a $46.5 million loan from IDB Invest's own funds, as well as a $20 million loan from the People's Bank of China (PBOC) via the IDB Invest-managed China Co-Financing Fund for Latin America and the Caribbean (CHC). The loan package has an 8 year maturity. Other borrowing terms are unknown. The loan proceeds will go towards the construction and equipment of a new plant for recycling aluminum and producing aluminum alloys located in the Municipality of Cienega de Flores in Nuevo Leon, Mexico. The project is intended to strengthen the Arzyz Metals' raw material processing capacity, thus promoting circularity in the Mexico's aluminum industry. More specifically, the new plant will have two production lines, each with a capacity of 7,000 ton/month. Line 1 will process low-density light material with an average grinding of 180-200 kg/m3. Line 2 will use high-density coarse material with an average grinding of 500-600 kg/m3. The plant will have six natural gas-fired ovens supplied by the central grid. As of 2023, IDB Invest listed the project as being in 'implementation'.

Additional details

1. The IDB Invest project identification number is 12822-01 and project title is "Varmoxz". 2. Hogan Lovells, the firm that advised IDB Invest on the loan, provided May 26, 2020 as the financial close date. However, the "signed date" provided by IDB Invest itself has been used as the commitment date.

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