AFFOS, one of Brazil’s largest biofuel producers, announced its capital restructuring as part of a strategy that paves the way for the arrival of investments from the UAE’s Mubadala Capital Fund, as announced earlier this year.
ATFOS will transfer US $1.3 billion in debt bonds to Soneva Renewable Energy, a finance subsidiary of FIP Agroenergia, which is currently taking over the biofuels company. As a result, 90% of ATFOS shares will be transferred to Soneva, allowing ATFOS to exit judicial proceedings to regulate financial recovery and thus earn investments after Mubadala Capital pledged to invest $105 million in ATFOS.
After earning Capital’s investment and debt restructuring, ATFOS expects to invest $334 million in the agricultural and industrial sectors in the current crop season. The company added that the move is in line with the long-term planning of the new shareholder that seeks to increase the company’s production capacity until it reaches the grinding of 30 million tons of sugarcane in the coming crop seasons.
Thanks to capital restructuring, Atphos’ total debt fell by 50%, extended to 2043, and interest rates declined, with early payments possible within three years.
In the last crop season, Atphos manufactured 22.4 million tons of sugarcane, which allowed the production of 1.6 billion litres of ethanol and 382,000 tons of raw sugar and the co-generation of 2,132 thousand gigawatt hours of electric power using biomass, as well as the issuance of 2.2 million carbon stocks. (CBIOs), it should be noted that Atphos is one of Brazil’s largest producers of ethanol and operates in the states of Guias, Mato Grosso and Mato Grosso do Sul and São Paulo.
