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Bond Market News
Raízen’s Dollar Bonds Rally upon Disclosing Documents for Out-of-court Restructuring
May 29, 2026
Raízen’s dollar bonds jumped by nearly 2.5 points across the curve after it disclosed documents regarding its ongoing out-of-court restructuring negotiations. Analysts said that the released documents included forward-looking projections and a reported BRL 3.3bn ($650mn) cash burn for early-2026, helping ease market concerns regarding a reasonable path forward. Raízen’s proposed restructuring includes a BRL 3.5bn ($690mn) capital injection from Shell and an additional BRL 500mn ($99mn) from an Aguassanta Investimentos vehicle. The core proposal offers a debt-to-equity swap converting 45% of its debt into equity and the remaining 55% into new debt. Furthermore, the strategy involves a split by dividing the firm into Raízen Energia and Raízen Combustíveis. Besides, a governance overhaul is also expected, with a shift of board control to creditors and Shell retaining veto power over major decisions. Also, it involves an asset divestment plan to sell Argentine fuel assets and multiple sugarcane mills to shore up liquidity. Offshore bondholders are reported to have returned to the table after initial disagreemnts, to negotiate and finalize an agreement ahead of its June 6 deadline.
Raízen’s 6.45% 2034s rallied by 2.3 points to trade at 56.5, yielding 16.1%.
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