São Paulo – Brazil’s major biofuel company Atvos announced a change in its capital structure as part of the strategy for paving the way for the arrival of the investments from Mubadala Capital, a fund from the United Arab Emirates, as announced earlier this year.
Atvos will transfer BRL 6.4 billion in debt titles to Soneva Energias Renováveis S.A, a finance vehicle corporation of FIP Agroenergia, the current owner of the biofuel company. As a result, Soneva will own 90% of the shareholding control of Atvos. This will allow the company to leave judicial recovery and get the investments. Mubadala Capital pledged to invest BRL 500 million [USD 105 million] in Atvos.
Atvos reported upon the arrival of Mubadala Capital and the debt restructuring, it aims to invest BRL 1.6 billion [USD 334 million] in agriculture and industry in the current crop year. The company added this is in line with the long-term planning of its new shareholder, which aims to expand the company’s production capacity to a milling of 30 million tonnes of sugarcane in the next crop years.
The capital restructuring cut the gross debt of Atvos to 50% and extended its maturity to 2043 at a low-interest rate, and the first payments may start in three years.
“We’ve reached a debt profile that’s appropriate to the current reality of our operations, thus providing the necessary solidity for us to invest in our agro-industrial units, new business, innovation, staff training, communities, and the whole supply chain,” said the company’s CEO, Bruno Serapião, who took office last May.
In the last crop year, Atvos processed 22.4 million tonnes of sugarcane, allowing the production of 1.6 billion liters of ethanol, 382,000 tonnes of VHP sugar and the cogeneration of 2,132 GWh of electricity from biomass, as well as 2.2 million Decarbonization Credits (CBIO). Atvos is a major ethanol company based in Brazil, with operations in the states of Goiás, Mato Grosso, Mato Grosso do Sul, and São Paulo.
Translated by Guilherme Miranda
