By Brazil Stock Guide – Movida Participações (B3: MOVI3) completed the refinancing of all debt maturing in 2026 after securing R$3.5 billion in funding during the first two months of the year. The early execution removes short-term refinancing risk and strengthens the company’s balance sheet at a time when domestic interest rates remain structurally high.
The funding package combined local debenture issuances, rollover of existing liabilities, and international loans, including a US$235 million facility from the International Finance Corporation (IFC) and an additional US$67 million loan from foreign banks. The company said 100% of its debt is fully hedged into Brazilian reais, in line with its financial policy of avoiding foreign-exchange exposure.
The refinancing materially improved Movida’s key leverage metrics. After the transactions, net debt to EBITDA declined to 2.6x, the average cost of debt fell to CDI plus 1.8% per year, and the average maturity of gross debt extended to 4.1 years, marking the strongest levels achieved over the past three years.
Beyond balance-sheet optimization, the IFC-backed loan carries strategic relevance. Proceeds are allocated to fleet renewal with low-carbon-emission vehicles, aligning liability management with sustainability goals while expanding access to long-tenor international funding. The move highlights how Movida is using its debt strategy not only to mitigate financial risk, but also to improve cash-flow visibility and support long-term value creation in a capital-intensive sector.
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