Group of farmers raises money through green certificates

A group of seven grain producers from the Central-West region raised last week R$63.6 million by issuing agribusiness receivables certificates (CRAs) with the commitment of not deforesting, even legally, and of recovering forests in permanent preservation areas, in addition to productive commitments. The seven farmers committed to recompose 2,046 hectares near riverbeds that are now degraded, bringing back the original vegetation. And, until the CRAs expire in June 2025, they must also keep intact 24,667 hectares. The properties involved, in Mato Grosso and Mato Grosso do Sul, cover 78,452 hectares and produce soy, corn and cotton. The financial transaction, led by Gaia Securitizadora, was the first with a sustainable character in the CRA market bringing together more than one collateral, a modality allowed after being regulated by the Securities and Exchange Commission of Brazil (CVM) in 2018.

Source: Valor International

https://www.valor.com.br/international/briefs

Swedish AAK, of vegetable oils, plans to grow in Brazil

Swedish company AAK – which produces vegetable oils used by chocolate makers and in bakery, dairy products and special nutrition – told Valor it expects to intensify businesses in the country. The projection is for a double-digit growth by 2021. The company started in Brazil in 2016, with a plant in Jundiaí, a city just over 50 km from São Paulo, after an investment of R$200 million. The unit has a production capacity of 100,000 tonnes a year, but it was projected to allow for expansion.

Source: Valor International

https://www.valor.com.br/international/briefs

Positive Ventures raises R$55m for impact investing

Positive Ventures raised R$55 million for its first fund to buy stakes in companies focused on social and environmental impact. The project received funds from investors from wealth-management firms, private banking and some well-known executives from the financial market. 

Half of the money raised has been allocated, co-founder and CEO Andrea Oliveira says. The plan is to hold eight to ten investments and a reserve for secondary offerings. The fund will have up to two years to use the funds and eight to ten to divest. The individual injections range from R$1 million to R$5 million.

Source: Valor International

https://www.valor.com.br/international/briefs

Natura revenue grows 12% in the year to R$37bn

Natura& Co reached a net revenue of R$36.9 billion in 2020, up 12% year over year, with much of this performance reflecting the last two quarters. In the period, the company successfully run Avon, whose acquisition was completed in January of last year, and accelerate digital sales, which increased 79% year over year in the fourth quarter. The company’s brands saw the highest levels of digital sales in their history.

Source: Valor International

https://www.valor.com.br/international/briefs

Private equity draws individual investors

Private equity is starting to attract individual investors in Brazil, according to Pedro Parente, founding partner of EB Captial and former CEO of Petrobras. According to him, the country already has individual investors “without aversion to illiquidity” who are starting to look into private equity funds as a long-term investment option. Mr. Parente ads that with the current low interest rates the segment has “huge space to move forward.”

Source: Valor International

https://www.valor.com.br/international/briefs

Pandemic boosts sales of aluminum cans

Sales of aluminum cans for food and beverages jumped 7.3% to 32 billion in 2020 because of the increase in consumption by people locked at home during the pandemic. The can industry plans to invest R$2 billion in 2021 and 2022 to build three new factories and to expand existing production lines. Beer was one of the products that help the expansion on sales as brewers opted for cans to better attend residential demand. In early 2020, 55% of the beer sold in the country was in cans. By the end of the year, the number had jumped to 70%.

Source: Valor International

https://www.valor.com.br/international/briefs

PetroRio mulls new investments with R$3 bn raised in January

Brazil’s largest independent oil company PetroRio is outlining new investments and expects to start a drilling campaign in the Campos Basin this year, seeking to increase production in the coming years. Flush with R$3 billion in cash after a share offering in January, the oil company is also monitoring new acquisition opportunities in the market. For the first half of the year, the focus is on connecting the Polvo and Tubarão Martelo fields, acquired from Dommo (formerly OGX) last year. The expectation is to conclude the activities in July.

Source: Valor International

https://www.valor.com.br/international/briefs

Packaging company Irani to invest R$743m to expand

The traditional manufacturer of corrugated boxes and packaging papers Irani Papel e Embalagem ended 2020 with the highest net profit in its history: R$92.8 million. The company continues ahead of schedule in the execution of the Gaia Platform – its portfolio of expansion projects to increase competitiveness, production capacity and energy sufficiency. This project will require investments of R$743 million by the end of 2023. The company is negotiating with the Brazilian Development Bank (BNDES) to finance most or even 100% of this amount.

Source: Valor International

https://www.valor.com.br/international/briefs

Hapvida and NotreDame to merge

After almost two months of negotiations, the two largest health plan providers in Brazil, Hapvida and Grupo NotreDame Intermédica (GNDI), closed a deal on Saturday to merge their operations and create a company valued at R$110.5 billion. That is the 11th most valuable company listed at stock exchange B3, considering Friday’s closing. The new giant – the largest vertical operator in Latin American – will have 13.6 million users of medical and dental plans, with net revenue of R$18.2 billion. The new provider will be created with 53.6% of Hapvida shares and 46.4% of GNDI shares.

Source: Valor International

https://www.valor.com.br/international/briefs

Caixa creates property credit line pegged to saving accounts

State-run bank Caixa Econômica Federal starts to offer next week a new credit line for property finance that will be pegged to the saving accounts interest rates. The institution has set aside an initial R$30 billion for the line and expects them to be consumed in just a few months. With the benchmark interest rate Selic in a low level and real estate prices stable, the new line tends to be cheaper for the conventional rates.

Source: Valor International

https://www.valor.com.br/international/briefs