Banks Pressure Cosan for Better Raízen Debt Restructuring Terms, Sources Say

Brazilian banks with exposure to Raízen are reportedly escalating pressure on its parent company, Cosan, and its advisor, BTG Pactual, demanding more favorable terms in the ongoing debt restructuring of the sugar and ethanol firm. According to sources familiar with the matter, who requested anonymity due to the private nature of the discussions, Bradesco has intensified its demands, seeking clearer commitments from Cosan regarding Raízen. This assertive stance could potentially disrupt Cosan's plans to list its gas unit, Compass, in which Bradesco holds a stake. Brazil Journal had previously reported on the possible postponement of the IPO, which could have been the first in Brazil in nearly five years. Furthermore, Itaú has signaled its potential to adopt a tougher negotiating position, warning that it might restrict credit access for other companies within Cosan's ecosystem if all parties involved do not share the burden of Raízen's financial restructuring, some sources indicated. The banks are also pushing for a larger contribution from Shell. The oil giant, which co-owns Raízen with Cosan, has already agreed to contribute R$3.5 billion. While Cosan is no longer in discussions to inject funds, its founder, Rubens Ometto, has committed to investing R$500 million through his holding company. BTG Pactual, which gained significant influence in these discussions after investing R$4.5 billion in Cosan, had previously stated it would not play an active role in the financial restructuring.