Shell commits to support Raízen amid financial restructuring

Shell has confirmed its commitment to inject R$3.5 billion  (€577 million) into Brazilian sugar and ethanol producer Raízen, as the company works to stabilise its finances following a period of heavy losses and rising debt.
The announcement was made by Shell’s Brazil chief executive, Cristiano Pinto da Costa.
Raízen, a joint venture between Shell and Cosan, has faced mounting financial pressure due to high investment costs, adverse weather impacting crops and a sharp increase in borrowing costs.
In February, the company warned of “significant uncertainty” around its ability to continue operating without additional capital support.
Shell said the investment will act as a backstop to support recapitalisation efforts and maintain operational continuity. The company also expects other shareholders to contribute further funding, though it acknowledged that discussions around Raízen’s future structure are ongoing.
While Shell indicated a preference to keep Raízen’s integrated business intact, it did not rule out a potential split of assets at a later stage, once financial stability has been restored.