FS raises $550 million in five-year green bonds
Lucas do Rio Verde, December 4, 2020 – FS, the first ethanol player in Brazil that uses corn in 100% of its production, has just raised US$550 million in a Green Bond issues, adhering to the Green Bonds Principles, according to an assessment made by SITAWI. Proceeds will be used to implement or refinance projects and to purchase assets capable of bringing environmental benefits, in line with FS’ purpose to increasingly foster sustainability. Over 80 investors, mostly foreigners, participated in the transaction, which was coordinated by Morgan Stanley, demonstrating the strength and attractiveness of the Company to various markets. This reflects the works carried out by FS over the last three years focused on the preservation of the environment. The bonds have a return rate of 10% and a maturity of five years.
“Over the last three months, we have focused on introducing the Company to the market since its business model, until then, was not very well known by investors. Our excellent operating performance attracted good demand. This was our first international issue, and we consider the transaction a success”, stated Rafael Abud, the CEO of FS.
In addition to the first international issue, the Company also raised, in 2020, R$530 million in green issues in Brazil with two financial institutions – Santander and Credit Suisse. The first step was the issuance of Agribusiness Receivables Certificates (CRA), in the amount of R$210 million, by Credit Suisse, in February 2020. Following, in June 2020, FS issued R$140 million in Real Estate Receivables Certificates (CRI), also with Credit Suisse, and, finally, a bilateral loan with Santander, in the amount of R$180 million. These last two are remunerated with interest linked to sustainable goals, a pioneering model in Brazil, to be achieved by the Company until the end of the year. The goals were to: (i) remain in RenovaBio’s top 10 anhydrous ethanol ranking; (ii) increase the information transparency by achieving the GRI – Global Reporting Initiative seal in its sustainability report (all of which FS has already complied with); and (iii) receive certification for the issue according to the CBI – Climate Bonds Initiative standards, which will be completed by the end of December.