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FS - Fueling Sustainability
Why buy this bond?
"Agriculture for the 21st Century."
Attractive income with regular semi-annual income payment
EBITDA +149% to BRL 414.9 billion
Revenue +156% to BRL 1.163 billion
Ask without obligation
FS Bioenergy RI
The company is a corn grower and biomass processor in Brazil. With a production capacity of 1.4 billion liters of ethanol, 1.24 million tons of corn, 41 thousand tons of corn oil and 642,000 MWh of electricity in its biomass power plant.
"Agriculture for the 21st Century."
Complete information
Issuer
FS Agrisolutions Industria de Biocombustiveis Ltda.
The name of the issue
FS Agrisolutions Industria de Biocombustiveis, 10% 15Dec2025
Currency
US dollar $
Emission volume
600,000,000 USD
The face value of the bond
$1000
Indicative market price
1018 USD
Discount
18 USD
Coupon from face value
10% p.a
Coupon payout frequency
Due date
semi-annual salary
15/12/2025
100% liquidity
Yes
Minimum volume
$200,000
Yield to Maturity
9.60% pa - before taking into account all costs
Preferred scenario
9.06% pa - before taking into account all costs
Rating
BB- (Fitch)
Hierarchy of debt
Senior secured
You can find the prospectus for the bonds here:
10.00% Senior Secured Notes due 2025 - Prospectus
Economy
The company is growing very fast, as the demand for its products is high, at the same time, thanks to new technologies, its EBITDA margin remains at excellent levels for the sector at 39%.
Revenue +156% to BRL 1.163 billion
EBITDA +149% to BRL 414.9 billion
Debt/EBITDA: 3.9 (very good)
Since the company operates in a capex (capital expenditure) demanding environment, it uses the most advantageous way for financing, namely the placement of bonds, which are secured by the company's assets, on the capital market.
Bond summary
Bonds are very attractive in terms of yield as they are an anti-cyclical business. The reasons why the company had to offer higher percentages when signing bonds are related to the overall situation on the credit market, where investors often still ask for higher coupons, despite the fact that Covid-19 is not a problem for the company, which is proven by the numbers. After the credit market calms down (happens all year, see the history of all our trades for 2020), we expect the bond value to rise to $1,160 +10%.