December 3 (Renewables Now) - US oilseed processing Bunge Ltd (NYSE:BG) and British oil firm BP plc (NYSE:BP) said Monday they have finalised their bioenergy joint venture (JV) in Brazil, called BP Bunge Bioenergia.
The JV brings together the companies' Brazilian bioenergy and sugarcane ethanol businesses and will focus on the production of ethanol and sugar as well as renewable power, using waste biomass from the sugar cane. The renewable energy will be used to power all its 11 sites and the surplus will be sold to the Brazilian power grid.
Bunge received USD 775 million (EUR 704m) in cash proceeds from this transaction. More specifically, the JV assumed USD 700 million of non-recourse debt at closing, while BP made a payment of USD 75 million, before customary closing adjustments. Bunge used the proceeds to repay outstanding debt under its credit facilities.
Itau BBA was Bunge's exclusive financial adviser, while Lefosse Advogados was the company's legal counsel.
(USD 1.0 = EUR 0.909)