Published by Global Banking & Finance Review®
Posted on March 3, 2026
2 min readLast updated: April 2, 2026
Add as preferred source on GoogleShell’s Brazil CEO says the company will invest R$3.5 billion (~$668 million) to backstop Raízen amid a severe debt and operational crisis, with expectations of additional capital from another shareholder; Raízen faces a steep loss, rising debt and strategic pressure to restructure.
By Fabio Teixeira and Marta Nogueira
RIO DE JANEIRO, March 3 (Reuters) - London-listed oil company Shell is committed to investing 3.5 billion reais ($667.84 million) in troubled sugar and ethanol maker Raizen, the energy company's Brazil CEO said on Tuesday.
Raizen has reported a string of losses and soaring net debt in recent quarters amid costly investments and poor weather negatively impacting crops, prompting the company to warn in February of "significant uncertainty" about its ability to keep operating.
Reuters last week reported that Shell would pump 3.5 billion reais into Raizen, with sources suggesting that sum would be disproportionate to funds coming from Cosan, which also owns the company in a joint venture with the oil firm.
Reuters also reported that Raizen's creditors were unhappy with a proposal from BTG Pactual, which runs a fund that entered Cosan's controlling shareholder group last year, to split Raizen in two by separating the fuel distribution business from refineries and other assets.
Shell would prefer to keep the beleaguered sugar maker together, said Cristiano Pinto da Costa, CEO of the British oil major's Brazil unit, adding that Shell also expects another shareholder to be able to shore up Raizen's fortunes with an additional investment of 3.5 billion reais.
A possibility exists to split Raizen into two separate units in the future, Costa said. However, such an eventuality should only be assessed once recapitalization has been completed, he added.
Later on Tuesday, Brazilian newspaper Valor Economico reported that Cosan does not plan to inject any capital into Raizen, citing unnamed sources.
Cosan's founder and controlling shareholder, Rubens Ometto, on the other hand, would invest 500 million reais in the sugar maker through his family office Aguassanta, Valor said.
($1 = 5.2408 reais)
(Reporting by Fabio Teixeira and Marta Nogueira in Rio de Janeiro, additional reporting by Fernando Cardoso in Sao Paulo; Writing by Oliver Griffin; Editing by Gabriel Araujo and Franklin Paul)
Shell is investing 3.5 billion reais (about $668 million) in Raizen to help the company manage its financial difficulties.
Shell is backing Raizen due to the company's recent losses, soaring net debt, and operational uncertainties caused by costly investments and poor weather.
Raizen is a joint venture owned by Shell and Cosan.
There is a possibility Raizen could be split in the future, but Shell’s Brazil CEO said this will only be considered after recapitalization.
Raizen faces ongoing losses, high debt, and operational difficulties attributed to expensive investments and adverse weather conditions impacting crops.
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