Suzano picks up new SLL

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Brazilian pulp and paper giant Suzano has inked a $1.2 billion export prepayment agreement tied to a sustainability-linked loan that will charge lower interest if the company meets its reforestation targets. The loan was issued by a pool of 10 banks and amounts to “close to 10% of our net debt”, CFO Marcos Assumpção told LatinFinance . Under the contract, Suzano will pay a spread of 1.45% over SOFR with an average term of five years and a final maturity of 2031. The names of the banks were not disclosed. However, the interest rate will fall by two basis points the company meets its goal of 500,000 hectares of reforestation corridors to connect fragments of native forest it owns across Brazil’s Cerrado savannah, Atlantic Forest, and Amazon biomes by 2030. ADVERTISEMENT IDB Invest – Protecting the Amazon Region with AI, Algorithms and Data Innovative digital tools can support climate action, mitigate biodiversity loss, and optimize natural resource management. Conversely, Suzano will pay an extra two basis points if it misses the reforestation target. “We are talking about two basis points, up or down,” Assumpção said. “The key performance indicators (KPIs) here are the corridors that we are building between our forests. This is part of our long-term strategy of helping biodiversity,” he said. Reforestation may be either with native species or with eucalyptus, he added. GLOBAL STANDARDS Suzano said the deal received an independent assessment from S&P Global to ensure the operation complies with sustainability criteria established by the International Capital Markets Association. The company last picked up an SLL in March 2024 for the sum of $780 million, with KPIs related to reducing greenhouse gas emissions. Suzano said the proceeds of the latest deal, coupled with the company’s own cash, will be use to pay down the principal of a 2021 export prepayment agreement, according to a securities filing. Separately, the company said it named Malu Paiva executive vice president of sustainability, communication and branding, according to a press release on Monday. She replaces Fernando Bertolucci, who is to become a board member.