By Brazil Stock Guide – Azevedo & Travassos S.A. (B3: AZEV3) signed a Memorandum of Understanding with Jive Investments to secure up to BRL 464 million ($88 million) in financing, including a BRL 50 million six-month bridge loan and a potential BRL 414 million long-term facility to fund its Rota Verde and Rota Agro concessions.
The company said proceeds from the bridge loan will cover operating expenses and support the Boaventura Energy Complex, a project being developed with Petrobras. The long-term tranche is expected to reinforce regulatory capital requirements of BRL 400 million due to the transport regulator ANTT in October and December.
Under the MoU, Jive holds 90 days of exclusivity to negotiate final contracts. The deal is subject to due diligence, corporate and regulatory approvals, and the signing of a BRL 1.76 billion Petrobras contract awarded to a consortium led by Azevedo & Travassos’ subsidiary Heftos.
The financing talks come as Reag Investimentos, a former controlling shareholder, sold its stake through Camaçari FIP to Nemesis Brasil Participações, the holding company of current CEO Gabriel Freire. Reag was targeted in August by Operation Carbono Oculto, a federal investigation into alleged links between organized crime and investment funds. Reag founder João Carlos Mansur resigned as chairman and board member following the transaction.
Founded in 1922, Azevedo & Travassos has shifted its focus toward infrastructure and energy concessions. The company recently won the Rota Verde highway corridor in Goiás and the Rota Agro corridor between Mato Grosso and Goiás, projects that will demand about BRL 4.4 billion in investments.
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