Suzano concludes transaction to raise capital via the first issue of green bonds in Brazil's domestic market

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Suzano concludes transaction to raise capital via the first issue of green bonds in Brazil's domestic market

November 28, 2016 - 09:59
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SAO PAULO, Nov. 28, 2016 (Press Release) -Suzano Papel e Celulose S.A. (Bovespa: SUZB5) announces to its shareholders and the general market that it has concluded the transaction to raise capital via the first issue of green bonds in Brazil's domestic market, with the placement of Agribusiness Receivables Certificates (CRA) form the 96th Series of the 1st Issue of Eco Securitizadora de Direitos Creditórios do Agronegócio S.A., in the amount of one billion reais (R$1,000,000,000.00), which are secured by Export Credit Notes issued by the Company. The bonds mature in eight (8) years and may be renegotiated in the fourth year, with semiannual interest payments corresponding to 96% of the CDI rate, which is the lowest rate ever obtained in Brazil from the issue of CRAs in operations with similar terms.

As with other green bond issues in the world, the proceeds from the transaction will be invested by Suzano in projects that feature positive environmental attributes and foster sustainable development. The use of the proceeds will be monitored by an expert independent audit firm to ensure they are allocated to projects that qualify as green projects.

The issue strengthens Suzano's financial discipline and its strategy to pursue more competitive funding sources through innovations that offer unique conditions. The transaction to raise capital also strengthens the Company's commitment to sustainability.