BNDES Seeks Solution for Raízen's Debt, Expresses Interest in Company's Recovery

The President of the Brazilian Development Bank (BNDES), Aloizio Mercadante, announced that the bank is actively working to find a solution for Raízen, a prominent joint venture between Cosan and Shell, which operates approximately nine thousand fuel stations. Last week, Raízen filed for out-of-court restructuring to renegotiate debts estimated at R$65.1 billion. Mercadante clarified that BNDES is not directly involved in Raízen's out-of-court restructuring process, as its financing is secured by real assets, specifically the company's sugar mills. The list of creditors includes financial institutions such as The Bank of New York Mellon, True, and Pentágono, among others. During a press conference detailing the financial results for 2025, Mercadante emphasized BNDES's commitment to Raízen's future. “We have a strong interest in seeing this company recover. It holds significant weight in the biofuels sector. We are assisting in finding a favorable solution for the company,” he stated. Mercadante also highlighted the robust and strategic assets held by Cosan, one of Raízen’s partners, particularly in the gas sector and its extensive network of service stations. He suggested that “these assets could potentially be of interest to Petrobras. They have synergy with Petrobras, but it is necessary to ascertain the company's interest, even in the biofuels sector.” He added that “the increase in crude oil prices will benefit the ethanol sector, which serves as a direct substitute for vehicle fleets.” Raízen estimates that it will need to disburse R$13 billion over the next 24 months to amortize its debts. The company’s financial restructuring involves comprehensive strategies aimed at optimizing its capital structure and operational efficiency to ensure long-term sustainability.