Marfrig prices transition bonds

Marfrig prices transition bonds

Bonds Debt Capital Markets Corporate & Sovereign Strategy Fixed Income Brazil United States

Brazil's Marfrig has sold $500m in so-called transition bonds, raising money to develop more sustainable ranching practices.

The bookrunners BNP Paribas, ING and Santander put the initial price talk in the high 6% range up to 7%, and then priced the 10-year notes to yield 6.625%, according to a source on the deal.

Demand reached three times the amount offered, and orders came from investors in Europe, the United States and Asia, Marfrig said in a statement.

The company said it would use the money to buy cattle that can be traced to the Amazon Biome in the states of Mato Grosso, Pará and Rondônia to help control deforestation.

Marfrig issued its notes through the US subsidiary NBM with backing from Marfrig Global Foods, MARB BondCo, Marfrig Holdings and Marfrig Overseas.

Brazilian paper company Klabin came to the market with $500m in green bonds in March, printing the 30-year paper at 7.125%. It also sold $500m in 10-year notes at 5.8% on the same day.

Klabin is investment grade, while Marfrig, the second-largest meat producer in the world, is at least three levels below investment grade.


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