Shell and Cosan to inject up to 4.5 billion reais into sugar-ethanol JV Raizen for recapitalization

Shell and Cosan, joint-venture partners in Brazilian sugar and ethanol producer Raizen, have announced a significant recapitalization financing totaling up to 4.5 billion reais. Shell is set to inject up to 3.5 billion reais, with Cosan contributing 1 billion reais. This substantial capital infusion targets Raizen, described as a powerhouse in sugar, ethanol, and bioenergy, which operates mills and is expanding its second-generation ethanol plants and infrastructure in Brazil. The financing is categorized as a recapitalization for a distressed company. This financing is notable given the scale of the investment and the involvement of two major energy and agribusiness conglomerates supporting a strategically vital entity. The recapitalization underscores the long-term commitment of Shell and Cosan to Raizen and the broader biomass sector in Brazil. It provides critical support for Raizen's continued operations and its expansion initiatives, particularly in second-generation ethanol, reinforcing Brazil's position as a leader in bioenergy production.