Shell Commits R$3.5 Billion to Recapitalize Raízen, Seeking Proportional Cosan Participation

Overview

• Shell’s Brazil chief said the R$3.5 billion injection is committed to stabilizing Raízen and preserving it as an integrated business.
• Shell expects the other controlling shareholder to contribute proportionally, while reporting indicates Cosan- and BTG-linked funds may consider smaller amounts, including R$500 million from Rubens Ometto and R$1 billion from BTG.
• Creditors that include Bank of America, Citigroup, J.P. Morgan and MUFG are discussing a potential conversion of roughly 30% of debt into equity.
• Executives held a meeting with President Luiz Inácio Lula da Silva, and the parties are holding daily discussions with no set timeline for an agreement.
• Shell said a prior data-room process failed to secure a new partner, and Raízen’s heavy debt load—reported above R$55 billion—has already prompted asset sales and raised debate over a future split after recapitalization.