Brazilian pulp maker Suzano issues its first panda bonds (updated)

Suzano SA

14/11/2024 22:07

(Adds details from interview throughout)
       SAO PAULO, Nov 14 (Reuters) - 
    Brazil's Suzano  SUZB3.SA , the world's largest pulp
manufacturer, has issued 1.2 billion yuan ($165 million) of
so-called panda bonds, the first by a nongovernmental or
nonfinancial company in the Americas, a senior executive said on
Thursday.
  
        All proceeds will be used to finance certified
eucalyptus plantations in Brazil, Chief Financial Planning
Officer Marcos Assumpção said in an interview. He will become
the chief financial officer in December.
  
        A panda bond is denominated in Chinese renminbi, sold by
a non-Chinese issuer in the People's Republic of China. Suzano's
three-year 2.80% bonds are called green panda bonds because they
are linked to environmental purposes.
  
        Issuance in China allowed Suzano to raise capital at a
lower cost while diversifying its fixed income exposure,
Assumpção said.
  
        "We believe this is a market that will continue to
evolve, becoming more liquidity and deeper, turning into an
important alternative for companies' financing," he said.
  


 (Reporting by Luciana Magalhaes in Sao Paulo; Editing by
Richard Chang)
 ((Andre.Romani@thomsonreuters.com; 11 991314109;11 56447500))