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Bond Market News
Raizen and Creditors Reach Out of Court Debt Restructuring; Downgraded to Caa3
March 11, 2026
Raízen has agreed to begin a BRL 70bn ($13.6bn) out-of-court debt restructuring, according to reports. The preliminary agreement has been reached with creditors representing roughly 40% of the company’s outstanding debt. The move follows ongoing negotiations with banks and bondholders after Shell and Cosan founder Rubens Ometto committed to injecting BRL 4bn ($770mn) in fresh capital last week. The restructuring proposal may include converting part of Raízen’s debt into equity, extending maturities on remaining liabilities, and selling non-core assets to stabilize the balance sheet. While Ometto is contributing funding personally, Cosan has stepped back from the rescue discussions after disagreements over a possible split of the company’s businesses. Meanwhile, private equity funds managed by Banco BTG Pactual SA opted not to invest further after disagreeing with certain proposed terms. Following the announcement, Moody’s downgraded Raizen by two notches to Caa3 from Caa1. Moody’s cited deteriorating credit metrics, high leverage, and persistent negative free cash flow driven by high interest costs and weak sugar-ethanol segment performance.
Raizen’s dollar bonds were down by 2–3 points across the curve with its 6.45% 2034s at 49.4 cents on the dollar.
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