US bulker charterer Bunge has found a sweet spot in energy production.
The agricultural commodities trader is partnering with energy giant BP to create a Brazilian bioenergy company focused on turning sugar into biofuels.
Bunge will receive $775m — $700m in collateral debt and $75m from BP — through the a 50-50 joint venture called BP Bunge Bioenergia.
Bunge said the proceeds will be used to lower outstanding indebtedness under its credit facilities, resulting in a stronger balance sheet and greater financial flexibility.
