Raizen Fuels Finance SA: Lower cash & higher leverage as expected, plan execution key – Maintain MW

Research evidence excerpt

Raizen Fuels Finance SA: Lower cash & higher leverage as expected, plan execution key – Maintain MW

rve at MW.

company noted this can be reassessed once there is greater clarity on restructuring plan Z-

implementation. Key milestones include tax liability resolution, Shell’s capital injection & Bond Rec Price YTW Sprd

issuance of the new financial instruments, to be completed by Mar-2027. RAIZBZ'27 MW 54.9 157.69 16976

RAIZBZ'32 MW 54.6 19.35 1678

RAIZBZ'34 MW 54.6 17.03 1418Continued asset sales and operational recovery necessary

RAIZBZ'35 MW 54.7 15.36 1228Deleveraging beyond initial EJ Plan expectations will depend on asset disposals and RAIZBZ'37 MW 54.6 15.32 1226

continued operational recovery. Portfolio optimization has been underway as Raizen sold RAIZBZ'54 MW 54.4 12.86 951

6 mills (~14mm tons) over the past two years for ~R$4bn and plans to sell another 10– Source: Bloomberg, BofA Global Research.

15mm tons (~R$2.5–3.8bn expected). Finalization of the Argentine Fuel sale (US$1.42bn, BofA GLOBAL RESEARCH

subject to adjustments for working capital, cash, fees, & buyer assumption of ARG debt)

remains a key near-term catalyst. While not expected, delays or weaker proceeds could

pressure recovery. The plan also includes splitting the business into Energia (ESB) and Glossary

Combustiveis (Brazilian fuel) by calendar YE27 to support further optimization. EJ: Extrajudicial

Maintain RAIZBZ curve at MW awaiting delivery of plan ESB: Ethanol, Sugar and Bioenergy

Although liquidity deteriorated in FYE26 and EJ Plan execution is a necessity, the return

to reporting increased important visibility. Fuel Distribution continues to offset ESB Lev.: Leverage

weakness. We maintain RAIZBZ bonds at Marketweight, given although our recovery