U.S. DFC Lends $565 Million to Brazil’s Serra Verde, With Option for Minority Stake

Overview

• Serra Verde signed the loan in Washington, securing $565 million from the U.S. International Development Finance Corporation to back its rare earths project.
• The agreement grants the DFC a right to buy equity that executives say would be a minority stake, with terms to be finalized in the coming months.
• Proceeds will refinance existing debt and fund production expansion and operational optimization as the miner ramps up after starting commercial output in early 2024.
• The loan exceeds earlier reports by about 22% from a previously discussed $465 million package.
• U.S. officials cast the deal as part of the Project Vault push to secure critical minerals, with Brazil seen as strategic given large TREO reserves and Serra Verde’s status as the only large-scale heavy rare earth producer outside Asia.