BRF fills short-term liquidity needs

BRF fills short-term liquidity needs

Loans Debt Coronavirus Brazil

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Brazilian meat company BRF said it has borrowed a total of BRL2.4 billion ($417 million) to increase short-term liquidity and face market volatility during the coronavirus pandemic.

The financing has an average tenor of 1.5 years, BRF said in a securities filing on Monday without naming the lenders. It added that it sill has access to a credit line for up to BRL1.5 billion from the state-owned lender Banco do Brasil for the next three years.

On March 30, BRF said it had secured a total roughly BRL1.4 billion in one-year financing to add to its cash holdings in a time of high volatility.

BRF renegotiated approximately BRL2.3 billion in loans from Bradesco and Santander in October last year. It also held talks with Banco do Brasil and Itaú Unibanco.

The company had planned to merge with local rival Marfrig and create one of the largest meat companies in the world, but the deal fell through in July last year after the companies did not agree on a management structure.