Raízen weighs Shell‑backed rescue amid rising debt
Published on: Mar 5, 2026
Company studies a R$4 billion ($765 million) lifeline as restructuring talks advance.
Raízen said it is evaluating a Shell‑backed capital injection of R$4 billion ($765 million), alongside options such as debt‑to‑equity swaps and asset sales. The offer includes R$3.5 billion from Shell and R$500 million from an investment vehicle owned by the family of Cosan controller Rubens Ometto.
In a securities filing, the company added that any solution “may, if necessary, be implemented through an out‑of‑court restructuring process,” as negotiations with creditors and shareholders continue, as reported by Reuters. The move follows a period of mounting financial pressure at one of the world’s largest ethanol producers.
Net debt rose to R$55.3 billion ($10.57 billion) by end‑December, driven by elevated capex, erratic weather and wildfires that curtailed harvests and reduced cane‑crushing volumes. Raízen has reported a string of losses, and in February warned of “significant uncertainty” over its ability to continue operating without a comprehensive fix.
Raízen, a joint venture between Shell and Brazil’s Cosan, did not reference a fresh capital contribution from Cosan in its latest disclosure. Control could tilt toward Shell if the rescue proceeds on current terms.
