March 25, 2019 / 11:09 PM / a month ago

Brazil sugar giant Raizen raises $233 mln, agrees $500 mln credit line

SAO PAULO, March 25 (Reuters) - Brazil’s Raízen Energia SA, the world’s largest sugar maker, raised 900 million reais ($233 million) using Agribusiness Receivables Certificates (CRA), the company’s chief financial officer told Reuters on Monday.

Guilherme Cerqueira, the CFO, said the company initially expected to earn 750 million reais from the operation but raised more due to demand, which exceeded expectations by more than double.

“There is a lot of liquidity in the market, and we were able to identify a window that did not have a lot of supply, which allowed us to have attractive rates,” Cerqueira said.

He said the money would not be used for any mergers or acquisitions, but rather to finance investments and the payment of debt for the crop year.

The company, through its wholly-owned subsidiary Raízen Fuels Finance, has also concluded a new five-year $500 million credit line, Cerqueira added.

Raízen Energia last week said it plans to increase sugarcane milling by up to 5.5 percent in the 2019/20 crop.

$1 = 3.8550 reais Reporting by Gabriel Stargardter; Editing by Leslie Adler

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