Cosan completes BRL 1.5bn bond placements

(SeeNews) – Mar 8, 2013 - Brazilian sugar, ethanol and fuel sector player Cosan (SAO:CSAN3) yesterday completed two bond placements worth a combined BRL 1.5 billion (USD 765.9m/EUR 584.8m).

The company raised USD 500 million (EUR 381.7m) in dollar-denominated notes which will mature in 10 years, paying 5.15% a year.

Cosan also issued BRL 500 million in real-denominated bonds, to mature in five years, with annual yield of 9.6%.

The proceeds will be used for the repayment of the BRL 3.6 billion loan disbursed to Cosan by local private banks Bradesco BBI and Itau BBA last year via debentures purchase. Cosan borrowed the resources for the acquisition of Brazilian natural gas distributor Comgas (SAO:CGAS3).

The bond offer was coordinated by Bradesco BBI, Itau BBA, BTG and Morgan Stanley. The coordinators were surprised by the great foreign investor interest in the placement. Real-denominated notes registered demand of BRL 2 billion, while dollar-denominated bonds hit a demand of as much as BRL 9 billion.

According to Leandro Miranda, director of fixed income at Bradesco BBI, Cosan may issue more bonds this month.

(BRL 1 = USD 0.511/EUR 0.390)

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