Seara, from JBS (JBSS3), raises R$1.5 billion in its first CRA; see rates – Money Times


seara jbs

Before this operation, JBS had already accumulated R$11.6 billion in CRA issues since 2019. The operation was divided into three tranches (Image: Disclosure)

A Eveningsubsidiary of JBS (JBSS3)closed the fundraising of R$ 1.5 billion in a CRA (Agribusiness Receivables Certificate). It was the first issue of this type of debt by the company.

Before this operation, JBS had already accumulated R$11.6 billion in CRA issues since 2019. The operation was divided into three tranches: 5, 10 and 20 years. The closed rates were:

  • 5 years: exchange rate variation + 5.3%
  • 10 years: IPCA + 6.79% (equivalent to 103% of the CDI)
  • 20 years: IPCA + 6.84% (equivalent to 105% of the CDI)

In the case of the 10 and 20 year tranches, the spread over the NTN-B (Brazilian treasury bonds) of the same maturity was 0.3% and 0.45%, respectively, the lowest in history in CRAs issued by JBS.

JBS also repurchased R$3.9 billion in previously issued CRAs, all with financial covenants (restrictive clauses). With this operation, 100% of JBS's debt does not have financial covenants, which gives the company greater flexibility in capital allocation.

CRAs are fixed income securities backed by receivables originating from rural producer businesses.

JBS: BTG raises target price and lists reasons to buy

O BTG Pactual (BPAC11) raised its target price for JBS shares from R$47 to R$48, maintaining its purchase recommendation.

The bank revised its estimates for the slaughterhouse, according to the guidance recently released. BTG now projects an Ebitda of R$35 billion for 2024, in line with the midpoint of its guidance (8% above previous estimates and 6% above consensus), driven by better expectations for the poultry businesses (PPC and Seara).

*Com Reuters

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