Shell, a joint-venture partner in Brazilian sugar and ethanol producer Raizen, is ready to inject up to 3.5 billion reais into the distressed company for its recapitalization, with fellow JV partner Cosan also contributing 1 billion reais. Raizen is a powerhouse in sugar, ethanol, and bioenergy, operating mills and expanding second-generation ethanol plants and infrastructure.
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Counterparts (3)
Investor
Shell
company · 2 deals
Shell is a global group of energy and petrochemical companies. Their strategy is to accelerate the transition of their business to net-zero emissions, purposefully and profitably.
Cosan
company · 1 deals
Cosan is a Brazilian conglomerate that invests in essential sectors for the country's development, including agribusiness, energy, gas, infrastructure, logistics, distribution and commercialization of fuels, and lubricants. The company operates through its subsidiaries, such as Raízen, Rumo, Compass, and Moove.
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Deal Analysis
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.
- 4.5 billion reais capital injection into Raizen.
- Major investors: global energy giant Shell and Brazilian conglomerate Cosan.
- Recapitalization of a "distressed" but "powerhouse" bioenergy company.
- Supports expansion in second-generation ethanol and bioenergy infrastructure in Brazil.
Source Intelligence
KEY DETAILS
Raizen is a joint venture between Shell and Cosan, with each owning 44%. Raizen posted a third-quarter net loss of 15.6 billion reais ($3 billion) in mid-February. Raizen appointed law firms Pinheiro Neto and Cleary Gottlieb, along with financial adviser Rothschild & Co, to assess its strategic alternatives. Raizen's credit ratings were downgraded by S&P Global, Fitch and Moody's. Raizen is considering selling its Argentine unit, which is expected to fetch about $1 billion.
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Deal Size
Shell was open to injecting 2.5 billion reais into Raizen but has since indicated it would offer up to 3.5 billion reais, subject to certain conditions, according to two of the sources. ... Cosan, which is undergoing a financial restructuring of its own, could contribute 1 billion reais
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Location
Brazilian sugar and ethanol producer Raizen
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Financials
The beleaguered sugar and biofuels producer saw its net debt climb to 55.3 billion reais by the end of December
PARTIES MENTIONED IN SOURCE
S
Shell
investor
"Oil major Shell (SHEL.L), opens new tab , the healthier joint-venture partner in Brazilian sugar and ethanol producer Raizen, is ready to pour more resources into a recapitalization of the distressed company"
C
Cosan
investor
"Cosan, which is undergoing a financial restructuring of its own, could contribute 1 billion reais"
R
Raizen
recipient of financing
"Brazilian sugar and ethanol producer Raizen, is ready to pour more resources into a recapitalization of the distressed company"
R
Rubens Ometto
potential investor
"Ometto - Raizen's chairman - may provide up to 1 billion reais, contingent on financing now under negotiation, sources said."
high quality
Enriched Mar 1, 2026
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Global Infrastructure Sherpa