Pinheiro Guimarães advises underwriters on Suzano’s Sustainability-Linked Bonds
Pinheiro Guimarães Advogados advised BNP Paribas, Bank of America, JP Morgan, Mizuho Securities, Rabo Securities, Scotia Capital, Banco Bradesco, Credit Agricole Securities, MUFG Securities and SMBC
Suzano, the Brazilian pulp and paper giant, raise US$500 million in a new sustainability-linked bond issuance.
Pinheiro Guimarães acted as Brazilian counsel to BNP Paribas, Bank of America, JP Morgan, Mizuho Securities, Rabo Securities, Scotia Capital, Banco Bradesco, Credit Agricole Securities, MUFG Securities and SMBC, as underwriters.
The sustainability-linked bonds will mature in 2028 and have an interest rate of 2.5%.
As part of the transaction, Suzano has committed to reducing its industrial water withdrawal intensity by 2026 and having 30% or more of its leadership positions occupied by women by 2025. Failure to comply with such undertakings will result in a 25-basis point increase of the interest rate, from 2.5% to 2.75%, or to 3% if the company fails to meet both targets.
The proceeds from the issuance will be used by Suzano for general corporate purposes and to repay its outstanding debt.
Suzano, a company listed on the São Paulo stock exchange (B3), is the largest producer of eucalyptus pulp worldwide, with a presence in over 80 countries.
Pinheiro Guimarães advised BNP Paribas, Bank of America, JP Morgan, Mizuho Securities, Rabo Securities, Scotia Capital, Banco Bradesco, Credit Agricole Securities, MUFG Securities and SMBC, as underwriters, with a team led by partners Camila Ohno (pictured left) and Cristina Tomiyama (pictured right), and associates Jonas Vilhena Cunha Assumpção and Ana Beatriz Gurgel in São Paulo.
Allen & Overy LLP acted as US counsel to the underwriters with a team led by partner David Flechner and associate Jeffrey You in New York, and associate Eduardo Kappel in São Paulo.
Cleary Gottlieb Steen & Hamilton LLP acted as US counsel to Suzano with a team led by partner Jason Factor and associate Victoria Ju in New York; partner Juan Giráldez and associate Luisa Francis Galliez based in the São Paulo; and associate Maria Manzur in Buenos Aires
