Odebrecht S.A., the holding company of the Odebrecht Group, entered into a financial agreement with five Brazilian banks to raise R$2.6 billion while rolling over shorter-dated liabilities at lower interest rates.
Odebrecht will use most of the new financing to invest in its construction company, Odebrecht Engineering & Construction (OEC), which is one of Group’s most profitable businesses and Brazil’s main reference in engineering excellence.
OEC will receive resources in order to pay immediately, within the 30-day grace period after the maturity date, the international bonds coming due.
The R$2.6 billion will be divided equally between Itaú and Bradesco and disbursed in two phases: one, immediately, in the amount of R$1.7 billion; the other in the amount of R$900 million.
The agreement also involved Banco do Brasil, Santander and the Brazilian Development Bank (BNDES), since it was secured by the appreciation in Braskem stock used as collateral for prior borrowings taken out from these institutions.
The conclusion of the negotiations with the banks also leaves Odebrecht in a more comfortable position to honor its financial commitments, including those arising from the agreements signed with the authorities in connection with its Leniency Agreement, and to continue on its path of transformation and growth.
“The new agreement not only is a demonstration of the trust placed in us by financial institutions, but also is a sign of our shareholders' trust in the capacity of our team members and in the technical qualifications of the Group’s companies to deliver high-quality services, especially Odebrecht Engineering & Construction,” said Luciano Guidolin, CEO of Odebrecht S.A.
Founded in 1944, Odebrecht is a Brazilian company with a global footprint, with operations in 25 countries. Its seven Business Units operate in the petrochemical, engineering & construction, infrastructure, agroindustrial, oil & gas, transport, real estate and shipbuilding industries. Each Business Unit is financially and operationally self-sufficient and has its own governance structure, which is reinforced by an effective Compliance system and by the commitment of all team members to act ethically with integrity and transparency. The Odebrecht Group has around 65,000 professionals of various nationalities and exports products and services to approximately 100 countries.
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