Brazilian pulp and paper producer Suzano is planning to raise up to BRL2.5 billion ($486 million) in its second local offering of rural development bonds, according to Fitch Ratings.
The company plans a two-part offering of 12-year CPR-F notes, as they are known, to fund the production of wood pulp from commercial forests while conserving native ones, Fitch said Monday in a report. It assigned the 2038 notes a local AAA rating.
CPR-Fs allow farmers and agribusiness companies to raise capital for operational costs by promising monetary settlement at maturity instead of the physical delivery of agricultural goods. It also provides tax incentives for investors.
The debt instrument were created in 1994 but issuers have only been required to register them with the central bank since 2021.
Suzano, which is the world’s biggest pulp producer, made its rural notes debut last September, raising a total of BRL2 billion in a three-part offering that exceeded one-third the issuance size in oversubscriptions.