By Brazil Stock Guide – Suzano S.A. (B3: SUZB3; NYSE: SUZ) has completed its first public sale of cash-settled Rural Product Notes (CPR-Fs) worth R$2 billion (US$370 million), following a bookbuilding process. The deal, conducted under the CVM’s automatic registration rules, was rated AAA by Fitch and coordinated by Itaú BBA, XP Investimentos and Banco Safra.
The issuance was divided into three series: 293,255 notes in the first, 956,745 in the second and 750,000 in the third. The remunerated securities will pay annual interest of 7.0753% (second series) and 7.0968% (third series), based on 252 business days.
According to the filing, there was no oversubscription exceeding one-third of the offer at the cut-off rate, which allowed the participation of related investors, as provided under CVM Resolution 160. The document also formalized the first amendment to the terms and conditions of the issuance, reflecting the results of the bookbuilding process.
Suzano said proceeds will go toward developing and managing commercial forests, as well as conserving native areas.
Rural Product Notes are a credit instrument created in Brazil to finance agribusiness. They were originally designed as a promise to deliver crops such as soybeans or corn at a future date. Over time, two types emerged: the CPR Física, settled through the delivery of goods, and the CPR Financeira (CPR-F), settled in cash with payment tied either to product prices or to a pre-agreed interest rate. In practice, CPR-Fs function as debt securities linked to agribusiness, and have increasingly been adopted by large companies as an alternative source of funding and a way to diversify their investor base.