By Brazil Stock Guide – Suzano SA (B3: SUZB3; NYSE: SUZ), the world’s largest pulp producer, priced a $1 billion bond issue due January 2036 as part of its ongoing liability management strategy. The securities, issued through subsidiary Suzano Netherlands, carry a 5.5% annual coupon and were priced to yield 5.667%, with settlement scheduled for September 10, 2025.
The new senior notes, fully guaranteed by Suzano, will help refinance higher-cost debt maturing later this decade. Proceeds will be used to repurchase outstanding 5.75% notes due 2026 issued by Suzano Austria and 5.5% notes due 2027 originally issued by Fibria Overseas Finance Ltd., now Suzano International. Both sets of securities are guaranteed by the company.
The company said the offering is aligned with its liability management program, which seeks to extend maturities and lower borrowing costs. Suzano may also pursue a make-whole redemption of the targeted notes, depending on market conditions. The deal comes as Brazilian corporates take advantage of stable external markets to lengthen debt profiles ahead of expected shifts in global interest rates.
The offering was registered with the U.S. Securities and Exchange Commission. The bonds will not be registered with Brazil’s CVM and cannot be offered publicly in the domestic market. Bookrunners include Bank of America and JPMorgan.
The transaction underscores Suzano’s focus on debt discipline while maintaining investor transparency. With more than $1 billion raised, the company further cements its access to international capital markets at competitive rates, while reducing refinancing risk tied to its near-term maturities.
Earlier, Petrobras returned to the international market with a $2 billion issuance in 5- and 10-year maturities, underscoring a broader reopening of funding channels for Brazilian issuers. Analysts say the transactions suggest international investors remain comfortable with the credit risk of Brazil’s largest corporates despite a volatile political backdrop.