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Shelling willing to pour $666 million into ailing JV partner to boost Raizen’s finances
- IBJ Bureau
- Mar 04, 2026
Shell, the healthier joint-venture (JV) partner in Brazilian sugar and ethanol producer Raizen, is ready to pour more resources into a recapitalisation of the distressed company.
Raizen, a top global sugar-maker, is in tough financial straits after posting a third-quarter net loss of $3 billion in mid-February, when it warned of “significant uncertainty” about its ability to keep operating.
Shell is open to injecting 2.5 billion reais into Raizen but has since indicated it would offer up to 3.5 billion reais ($666 million), subject to certain conditions, according to the Reuters, quoting two sources of sources familiar with the matter.
The Reuters adds that a third source has confirmed that Shell had offered more financing in recent weeks. Although nothing is settled until a final deal is inked, Shell is clearly willing to chip in a disproportionate amount to the capital injection.
Shell and its JV partner Cosan, an industrial conglomerate built by Brazilian billionaire Rubens Ometto, each own 44 per cent of Raizen.
Cosan, which is undergoing a financial restructuring of its own, could contribute 1 billion reais, while Raizen Chairman Ometto may provide up to 1 billion reais, contingent on financing now under negotiation.
A creditor has told the Reuters that to shore up its finances, Raizen would need some 25 billion reais, including fresh investment and the proceeds from the sale of its Argentine unit, which is expected to fetch about $1 billion.
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