Investment Rating - The report indicates a strong investment opportunity in Brazil's environmental sectors, particularly in climate and biodiversity solutions, positioning Brazil as a leader in these areas [4][15][64]. Core Insights - Brazil is seen as a decisive vector for climate solutions, with significant potential for catalytic investments to bridge the climate finance gap in Latin America [27][30]. - The Brazilian Amazon rainforest is critical for climate stability, providing essential ecosystem services and opportunities for innovative financial conservation strategies [17][69]. - The integration of climate, communities, and biodiversity is essential for strengthening the resilience of the Amazon rainforest, with investments in nature viewed as a long-term strategic asset [64][66]. Summary by Sections Introduction - Citi Research hosted an event in São Paulo to discuss challenges and opportunities related to climate and biodiversity with various stakeholders [13][14]. What Really Reduces Deforestation? - Effective deforestation control requires a market-based approach, emphasizing the need for well-defined property rights in the Amazon region [21][23]. - A carbon price of US$25 per ton could incentivize communities to preserve forests and regenerate degraded lands [25]. LatAm: A Decisive Vector for Climate Solutions - The report highlights the investment opportunities in Latin America to mobilize capital at scale for climate solutions [27][28]. - Domestic investors in Brazil are focused on creating innovative products that yield positive socio-environmental outcomes while achieving financial returns [29]. Biogas, Biomethane and Organo-mineral Fertilizer - Tupy's bio plant project exemplifies a successful partnership in renewable fuel production, transforming pig waste into biogas and organo-mineral fertilizer [33][36]. Tackling Beef Traceability - Minerva Foods has achieved 100% geospatial monitoring of direct-supplier farms in Brazil, addressing traceability challenges in the beef supply chain [39][40]. Agriculture 3.0 and BE8 Energy Panels - Brazil's agricultural sector has evolved significantly, with a focus on sustainability and efficiency, conserving approximately 324 million hectares from agricultural conversion [44][46]. Investing in Nature: Climate Impact through Carbon Ratings - The Brazilian Greenhouse Gas Emissions Trading System (SBCE) presents a major opportunity for Brazil to enhance its climate targets and stimulate domestic demand for carbon credits [60][62]. Beyond Carbon with High Integrity Forest Conservation - High integrity forest conservation initiatives can deliver benefits beyond carbon offsetting, integrating climate, communities, and biodiversity [64][66]. Looking to COP30 Belém - The upcoming COP30 in Belém is anticipated to focus on the Amazon rainforest's role in climate stability and the need for market instruments to achieve environmental and economic outcomes [69][71].

Core Insights - ADM has launched a new carbon capture and storage project at its Columbus, Nebraska Corn Processing Complex, making it the largest bioethanol carbon capture facility globally [1] - The project utilizes Tallgrass's Trailblazer pipeline to transport captured carbon dioxide (CO2) from ADM's ethanol plant to Tallgrass' Eastern Wyoming Sequestration Hub [1] Company Overview - ADM is recognized as a global leader in providing innovative solutions derived from nature [1] - The Columbus facility is a significant step in ADM's commitment to sustainability and reducing carbon emissions in the bioethanol production process [1] Industry Impact - The establishment of the largest bioethanol carbon capture facility is expected to set a benchmark in the industry for carbon management practices [1] - The collaboration with Tallgrass for CO2 transportation highlights the growing importance of infrastructure in supporting carbon capture initiatives [1]

Core Points - The review hearing for the takeover offers of Global Bioenergies has been postponed to 24 November 2025, with a new deadline for submitting offers set for 12 November 2025 [2] - The company initiated a pre-pack sale process on 3 June 2025, and a receivership procedure was opened by the Evry Commercial Court on 29 September 2025 to implement a sale plan [2] - If no final offer is made, judicial liquidation proceedings will commence simultaneously with the court's judgment, likely resulting in the delisting of Global Bioenergies' shares, with residual value expected to be zero due to liabilities exceeding asset sale proceeds [3] - The company is currently unable to finalize its half-year financial statements due to uncertainties surrounding the ongoing process [4]

Summary of Key Takeaways from Brazilian Corporates Conference Call Industry Overview - **Investor Trip**: BofA's 12th Brazil investor trip highlighted a stark sectoral divide and a defensive corporate posture among Brazilian corporates, with a focus on deleveraging and liquidity preservation in a challenging environment [1][2][3] - **Corporate Bond Performance**: Brazilian corporate bonds (EBRZ index) have underperformed with a total return of +3.5% YTD compared to LatAm (+8.9%) and EM (+7.5%) [1] Core Themes - **Deleveraging Strategy**: Companies are prioritizing deleveraging due to increased leverage and high local interest rates (15%), leading to postponed investments and accelerated asset sales [3][4] - **Sectoral Divide**: Sectors like Oil & Gas services, protein, and logistics are performing well, while industrial sectors such as steel and petrochemicals face margin compression due to low-cost imports, particularly from China [4][11] Credit Events and Market Sentiment - **Contagion Fears**: Recent credit events at Ambipar and Braskem have heightened investor scrutiny on balance sheets, potentially leading to a broader repricing of risk [2][4] - **Investor Preferences**: There is a growing emphasis on transparent governance and conservative financial policies among investors [2] Sector-Specific Insights - **Pulp & Paper**: The sector is navigating a downturn in pulp prices, with Suzano taking a leadership role through capacity cuts and diversification into consumer tissue [10] - **Metals & Mining**: The steel market is under pressure from Chinese oversupply, impacting CSN and Gerdau, while Vale remains focused on shareholder returns [11] - **Banking**: A bifurcation in credit quality is evident, with Itaú managing risks effectively while Banco do Brasil faces challenges in its agribusiness portfolio [12][51] - **Oil & Gas**: Petrobras is balancing investments with shareholder returns amid volatile Brent prices, while companies like Acelen are experiencing operational momentum [13][26] - **Agribusiness**: Adecoagro is facing significant margin squeezes despite high production volumes, with a focus on strategic acquisitions [19][37] Financial Health and Projections - **Banco do Brasil**: NPLs in agribusiness have reached 3.5%, prompting increased provisions to R$56 billion, with government intervention expected to stabilize the situation [51][52] - **Braskem**: The company is in crisis management mode, facing a prolonged downturn and cash burn estimated at $1 billion for 2025 [55][57] - **Acelen**: The refinery reported a significant reduction in operating costs from over $12/bbl in 2022 to $7.8/bbl in 1H25, with a positive outlook for diesel prices [26][27][33] Strategic Initiatives - **Acelen Renewables**: Plans for a $3 billion refinery project to produce sustainable aviation fuel and hydrotreated vegetable oil are underway [36] - **Adecoagro's Acquisition**: The acquisition of a stake in Profertil is seen as strategically beneficial despite potential near-term credit pressures [39][40] Conclusion - The Brazilian corporate landscape is characterized by a defensive posture, aggressive deleveraging strategies, and a clear sectoral divide influenced by both domestic and global economic factors. Investors are increasingly cautious, focusing on governance and financial health as key determinants for future investments.

Core Viewpoint - Global Bioenergies has entered a receivership procedure aimed at evaluating and implementing solutions to continue operations and maintain jobs, primarily through a sale plan [2][4]. Group 1: Receivership Procedure - The Evry Commercial Court has appointed SCP Abitbol & Rousselet as the administrator for Global Bioenergies [2]. - This procedure follows a pre-pack sale process initiated on June 3, 2025 [2]. - Four offers to take over part of the assets have been submitted to the court, with the possibility of changes and conditions that need to be met before the review hearing [3]. Group 2: Potential Outcomes - If certain assets or activities are taken over, or if no final offer is made, judicial liquidation proceedings will commence [4]. - The judicial liquidation is expected to lead to the delisting of Global Bioenergies' shares, with a likely residual value of zero due to anticipated asset sale proceeds being lower than liabilities [5]. - A hearing to review the takeover offers is scheduled for November 3, 2025 [5]. Group 3: Company Background - Global Bioenergies focuses on producing sustainable aviation fuel (SAF) and e-SAF from renewable resources, contributing to the decarbonization of air transport [6]. - The company's technology is certified by ASTM and meets high standards in the cosmetics industry, with L'Oréal being the largest shareholder at 13.5% [6]. - Global Bioenergies is listed on Euronext Growth in Paris under the code FR0011052257 - ALGBE [6].

Core Viewpoint - TruAlt Bio Energy is raising ₹750 crore through its IPO, with significant allocations for working capital, plant conversion, and corporate purposes, while promoters will reduce their stake to 70.6% post-IPO [1] Financial Overview - The IPO is priced at ₹496, representing 24 times FY25 earnings on a pre-dilution basis, which is a 20% discount compared to peers like Triveni Engineering and Praj Industries [2] - TruAlt has experienced a 56% growth in revenue and a 64% increase in EBITDA for FY25, leading to an EBITDA margin improvement of 0.84 percentage points to 16.2% [5] Operational Capacity - TruAlt has the largest ethanol capacity in India at 2,000 KLPD across five manufacturing units in Karnataka [4] - The company is converting its Ethanol Unit-4 into a dual feed plant, increasing its total dual feed capacity to 1,300 KLPD, which is 65% of its total capacity [6] Strategic Initiatives - The company is expanding its compressed biogas (CBG) business, which has grown to ₹23 crore in FY25, and is collaborating with GAIL to set up multiple CBG units [8] - TruAlt is also exploring partnerships for second-generation ethanol and sustainable aviation fuel, as well as green hydrogen projects [9] Revenue Diversification - Revenue from Extra-Neutral Alcohol has increased from 7% in FY23 to 16% in FY25, helping to mitigate risks associated with government control in the ethanol sector [11] Related Party Transactions - The company sources 100% of its sugar juice from promoter-owned entities, while the sourcing of molasses from these entities has decreased from 98% in FY23 to 79% [13]

Group 1 - The company Global Bioenergies has received four preliminary offers for the takeover of some activities and assets as part of a pre-pack sale process initiated on June 3, 2025 [3][4]. - No proposals have been submitted for the takeover of shares, which will become worthless upon the company's liquidation following the potential asset sale [4][5]. - The offers are still in a preliminary stage and may change, with conditions that must be met before the review hearing, which is expected to occur in September or October 2025 [5]. Group 2 - Global Bioenergies is focused on combating global warming by developing a unique process to produce sustainable aviation fuel (SAF) and e-SAF from renewable resources, addressing the decarbonization of air transport [6]. - The company's technology is one of the few certified by ASTM, and its products also meet high standards in the cosmetics industry, with L'Oréal being the largest shareholder, holding a 13.5% stake [6].

Core Points - The deadline for potential buyers to submit preliminary bids for Global Bioenergies has been extended to 18 July 2025, allowing more time for interested parties to conduct their studies [2] - Two offers and three letters of intent have been received, indicating interest in the company's assets [2] - A review hearing for final offers is expected to take place in September or October [3] Company Situation - Global Bioenergies is undergoing a pre-pack sale process aimed at maintaining business activities and jobs, but shareholders will not receive compensation, leading to a total loss of their investments [5] - The company has significant debts amounting to €13 million, which has hindered its ability to finance future operations as a listed entity [5] - Despite a promising partnership project with an undisclosed major industrialist, the company was unable to bring its solution to the Sustainable Aviation Fuel (SAF) market [5] Technology and Market Position - Global Bioenergies has developed a unique process for producing SAF and e-SAF from renewable resources, contributing to the decarbonization of air transport [6] - The company's technology is one of the few certified by ASTM, and its products meet high standards in the cosmetics industry, with L'Oréal being the largest shareholder at 13.5% [6]

Core Insights - TMD Energy Limited (TMDEL) has entered into a Memorandum of Agreement (MOA) with Double Corporate Sdn Bhd to explore strategic collaboration in the bioenergy sector for the EU and Asia markets [1][2] - This partnership aims to expand TMDEL's presence in sustainable and alternative fuel energy sectors, focusing on bioenergy sustainable fuel solutions [2][4] - Double Corporate specializes in waste-based bioenergy, converting waste into sustainable fuels and lubricants using ISCC-EU-approved technology, with expertise in sustainable aviation fuel (SAF) and sustainable marine fuel (SMF) [3][5] Agreement Details - The MOA establishes a one-year exclusivity period for negotiations, which can be extended by mutual consent, with both parties prioritizing the finalization of definitive agreements within this window [4] - The collaboration aligns with TMDEL's vision for sustainable business and fuel innovation, emphasizing a circular-economy approach [4] Company Profiles - TMD Energy Limited operates in marine fuel bunkering services, supplying various types of marine fuel oil and providing ship management and chartering services, with operations in 19 ports across Malaysia and a fleet of 15 bunkering vessels [6] - Double Corporate is a certified Malaysian bioenergy leader focused on converting waste into sustainable fuels, with a high-yield refining process that minimizes waste and energy consumption [5]

Core Viewpoint - Global Bioenergies is officially seeking buyers due to an inability to secure strategic investors to continue its operations, leading to a pre-pack sale process as part of a conciliation procedure [2][4][6]. Financial Position - The company currently has a gross cash position of 3.0 million euros and carries a bank debt of 13.1 million euros as of December 31, 2024, which remains fully on the balance sheet due to deferred repayments [3]. - The proceeds from the anticipated sale are unlikely to cover shareholder losses, indicating a total loss for existing shareholders [7]. Business Strategy and Challenges - The company shifted its focus to an R&D collaboration project with a major international industrial player to develop sustainable aviation fuels after failing to finance its first plant project [5]. - Despite engaging with numerous potential investors, no interest has been shown in acquiring a stake in the company, attributed to the current geopolitical climate and adverse investment conditions for climate solutions [6]. Sale Process - The pre-pack sale process allows potential buyers to acquire all or part of the company's business and assets, with a deadline for offers set for July 9, 2025 [4][8]. - The Commercial Court of Evry will evaluate the offers, with a potential closing of the sale expected in September or October 2025 [8]. Company Overview - Global Bioenergies specializes in producing sustainable aviation fuels (SAF) and e-SAF from renewable resources, contributing to the decarbonization of air transport [9]. - The company is listed on Euronext Growth in Paris, with L'Oréal as its largest shareholder, holding a 13.5% stake [9].