S&P rates Raizen Fuels green notes BBB

S&P said it assigned a BBB issue-level rating to Raizen Fuels Finance SA's planned unsecured green notes with a 10- to 30-year maturity.

Raizen SA, rated BBB, and its main subsidiary unrated Raizen Energia SA, which holds the group's sugar, ethanol, and energy businesses, will guarantee the notes.

“Although there is significant debt at the subsidiaries' level, we rate the notes at the same level as the issuer credit rating on the parent because they benefit from upstream guarantees and there are relevant operating assets at the parent level,” S&P said in a press release.

Raizen will use the proceeds to repay debts and to finance or refinance eligible assets and projects under its green financing framework, which may include investments in renewable energy and energy efficiency projects.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.