Mercadante on Raízen: Solution Responsibility Lies with Shareholders Cosan and Shell

Aloizio Mercadante, president of the Brazilian Development Bank (BNDES), has stated that the responsibility for the recovery of Raízen, a company undergoing out-of-court restructuring, primarily lies with its strategic shareholders, Cosan and Shell. In an interview with GloboNews, Mercadante clarified that the bank's role is to assist in finding a viable solution. He emphasized, "Shell is a company that generates between US$12 billion and US$15 billion in revenue in Brazil. Approximately 20% of its global oil reserves and 10% of its company's profit come from here. Therefore, Shell has a responsibility in Raízen's recovery. There are eight or nine thousand Shell-branded gas stations within Raízen. So, Shell must fully commit to helping resolve this. That's what we conveyed to them." Mercadante further added, "The same applies to Cosan. Over four years, Shell and Cosan withdrew R$26 billion in dividends from Raízen, which is a profitable, viable, and well-structured company, both in ethanol production—being the world's largest producer of ethanol and sugar—and in fuel distribution. So, first and foremost, they must step up." Mercadante also believes that the creditors—comprising 20 banks and approximately 4,000 investors who are part of the out-of-court restructuring—will also need to participate in the restructuring. He stated, "They have a responsibility for the capital they invested and need to help build a solution. We have been in discussions. The major national creditors have shown great commitment to seeking a good solution for the company." BNDES itself is a creditor but is not included in the current out-of-court restructuring process.