JBS raises US$1.2 billion from debenture issue

JBS SA, the world's largest beef producer, said Monday (Feb 1) it has raised BRR2.27 billion (US$1.2 billion) from an issue of convertible debentures.

The total amount of the operation could increase, considering an extra lot of debentures to be offered in the next few days, JBS said.

The debentures were acquired by BNDESPAR, the shareholding and investment arm of the government-controlled National Development Bank, or BNDES.

The debentures can be convertible into stock of JBS units based in the US once those units have held an initial public offering.

Earlier, JBS executives delayed the US$2 billion IPO for its US units, due to adverse market conditions, but the company said it still intends to hold the IPO.

The company is raising funds in order to finance the acquisition of Pilgrim's Pride Corp. (PPC) in the US.