Ambipar, FS sell international green bonds

Brazil’s Ambipar and FS Bioenergia joined a raft of Latin American corporates to tap the international market this week, raising a combined total of $1.25 billion in back-to-back green bond deals on Tuesday, a source told LatinFinance.

Ambipar, an environmental services firm, sold $750 million worth of seven-year green bonds, while bioenergy producer FS Bioenergia sold $500 million worth of seven-year, non-call three green notes, the source familiar with the deals said.

São Paulo-based Ambipar priced its 2031 notes at par to yield 9.875% after opening the deal earlier in the day at around 10%, according to the source. Investors placed as much as $1.8 billion in orders, the source added.

Bank of America, BTG Pactual, Itaú BBA and Morgan Stanley led the sale as global coordinators, along with Bradesco, Santander and UBS as joint bookrunners, according to an investor presentation seen last week.

The company said in the presentation that it plans to use the proceeds to pay off outstanding debentures in the local market and fund eligible green projects.

Fitch and S&P Global Ratings both assigned the green bonds an international BB+ rating.

FS TAPS INTO DEMAND

Meanwhile, FS’s 2031 notes carried a coupon of 8.875% and priced at 98.727 to yield 9.125%. It opened the initial price talk earlier in the day in the mid-9% area and set guidance at 9.25%, plus or minus 12.5 basis points, before launching the deal, according to the source.

Orders for the notes peaked at $1.3 billion, the source said.

Morgan Stanley, Citi and Santander acted as the global coordinators, along with BTG Pactual, J.P. Morgan, UBS and XP as joint bookrunners. BCP Securities was also co-manager on the deal, according to a separate investor presentation.

FS Bioenergia plans to use the funds to finance a tender offer underway for any or all $446 million outstanding on its 10% 2025 bonds, it added.

Moody’s Investors Service assigned the green notes an international Ba3 rating.

FS Bioenergia is a joint venture between local agricultural trader Fiagril and US-based agribusiness Summit Agricultural Group.