Home Agribusiness Fibria, the world’s largest eucalyptus pulp producer considers funding through CRAs

Fibria, the world’s largest eucalyptus pulp producer considers funding through CRAs

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Fibria, a Brazilian forestry company and the world’s leading eucalyptus pulp producer confirmed it is analysing the possibility to offer to domestic investors up to R$ 1 billion (around $ 320 million) in notes backed by agricultural receivables (CRAs). This selling would allow the company to raise money at a much cheaper cost that at overnight lending rate,

Fibria recently started the construction on an intermodal terminal in Aparecida do Taboado (state of Mato Grosso do Sul, MS), which will ship the pulp produced at its new plant in Tres Lagoas (MS) to the Macuco Terminal at the Port of Santos in São Paulo, from where it will be exported to clients in Asia, Europe and the United States.

In 2016 Fibria reported sales volume of 5.504 million tons in 2016, or 8 percent more than in 2015. In 4Q16, sales volume came to 1.584 million tons, increasing 21 percent from 4Q15.

The growth in world demand for eucalyptus pulp of approximately 1.3 million tons, according to PPPC data, combined with low inventory levels and the more-balanced short-term outlook than originally expected with regard to new capacities coming online, allowed the Company to announce, in 4Q16, successive price increases for China and other markets.