JBS’s Seara raises US$276 million through agribusiness securities

BRAZIL – Brazilian pork processor Seara, a subsidiary of JBS, has raised 1.5 billion reais (US$276 million) by issuing agribusiness receivables certificates (CRAs), according to sources familiar with the deal. 

These fixed-income securities, which are backed by receivables from the agribusiness sector, mark the first time Seara has turned to this type of fundraising.

Although this is Seara’s first foray into the CRA market, its parent company, JBS, has been utilizing CRAs since 2019, raising a total of 11.6 billion reais (US$2,1B) before this latest move. 

One source explained that entering the CRA market offers Seara an advantage, as these securities provide tax incentives for investors, enabling companies to secure capital at more favorable rates.

Demand for Seara’s CRAs reportedly reached 2.5 billion reais(US$456M), which shows strong investor interest.

In related developments, BioTech Foods, another subsidiary of JBS, recently opened a new cultivated meat production plant in San Sebastián, Spain. 

The facility, backed by an investment of approximately 200 million reais (US$36.1 million), is designed to produce over 1,000 metric tons of cultivated meat annually, with the potential to scale up to 4,000 metric tons in the future.

This initiative aligns with JBS’s strategy to expand its footprint in the alternative protein market, as the company aims to meet growing consumer demand for sustainable and nutritious food. 

BioTech Foods, which specializes in cultured meat derived from animal muscle cells, became part of JBS after the Brazilian giant acquired a 51% stake in the company in 2021 for US$100 million.

These developments come as JBS recently disclosed its financial projections for 2024. 

The company forecasted net revenue of 409.4 billion reais (US$76.5 billion) for the fiscal year, with an EBITDA range of between 33.4 billion reais (US$6 billion) and 36.2 billion reais (US$6.6 billion).

JBS revealed these estimates following a directive from the Brazilian Securities and Exchange Commission (CVM). 

The company emphasized that its projections were based on its operational track record, expected market conditions, and adherence to historical accounting standards.

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