By Brazil Stock Guide – MBRF (B3: MBRF3), the food group formed by the merger of BRF and Marfrig, has completed the largest fundraising in its history, raising R$2.375 billion ($490 million) in Brazil’s local debt market as it moved to extend maturities and reduce borrowing costs.
The transaction marks the group’s eighth debenture issuance and was structured through BRF using agribusiness receivables certificates (CRAs). The deal was divided into four tranches, with maturities ranging from 2030 to 2055, reinforcing MBRF’s strategy of lengthening its debt profile and strengthening its capital structure.
The base offer was set at R$1.9 billion but was upsized after investor demand reached approximately R$2.9 billion, equivalent to 1.52 times the initial amount. As a result, the company exercised an additional R$475 million option, representing 25% of the base volume, bringing total proceeds to R$2.375 billion.
Strong demand also enabled MBRF to tighten pricing across all four tranches, with an average reduction of 22 basis points per year. The company estimates annual financial savings of around R$5 million. On a comparable basis, the final cost of the operation was CDI plus 0.25% a year, the lowest funding cost the group has ever achieved in Brazil’s domestic capital markets.
The issuance included a 30-year tranche, the longest maturity ever issued by the company in the local market. As a result, the average maturity of the operation exceeds 10 years, significantly reducing refinancing risk and pushing the group’s debt profile further into the long term.
According to Jose Ignacio Scoseria, vice president for finance, investor relations, management and technology, the transaction is fully aligned with MBRF’s long-term financial strategy. “The meaningful extension of maturities strengthens the company’s capital structure and increases our financial flexibility to execute our business plan over the long term,” he said.
The deal is part of MBRF’s ongoing effort to optimize the balance between cost and maturity across its liabilities, reinforcing financial discipline as the group seeks to generate sustainable value following the integration of BRF and Marfrig.
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