Suzano S.A.’s $1 Billion Sustainability-Linked Senior Notes Offering

Paul Hastings and Pinheiro Guimarães advised the underwriters on the deal, while Cleary Gottlieb represented Suzano S.A. and its Austrian wholly-owned finance company Suzano Austria GmbH.

Suzano Austria GmbH and its parent guarantor, Suzano S.A., the world’s leading producer of eucalyptus pulp and one of Latin America’s largest paper producers., announced the $1 billion issuance of sustainability-linked notes.

An aggregate amount of US$1 billion of the Global Notes due 2032 was issued at a rate of 3.125%. BNP Paribas Securities Corp., BofA Securities, Inc., Mizuho Securities USA LLC, J.P. Morgan Securities LLC, Rabo Securities USA, Inc. and Scotia Capital (USA) Inc. were the global coordinators, along with joint bookrunners Credit Agricole Securities (USA) Inc., Goldman Sachs Bank Europe SE, MUFG Securities Americas Inc. and SMBC Nikko Securities America, Inc. The transaction settled on July 1, 2021, with the proceeds used for specified debt repayment and general corporate purposes.

The Global Notes are characterized as sustainability-linked bonds with environmental key performance indicators associated with the goal of reducing Suzano’s industrial water withdrawal intensity by the end of 2026; and a goal of increasing the representative of women in leadership positions by the end of 2025, evidencing Suzano’s commitment to a more efficient usage of natural resources in its operations and to diversity and inclusion objectives.

Partner David Flechner (Picture) led the Paul Hastings team, which also included associate Diana Balassiano, and summer associates Kimberly Forster and Maria Miranda.

The Cleary corporate team on the transaction included partner Juan Giráldez and associate Luisa Franciss Galliez based in the São Paulo office, and international lawyer Ana Gonçalves in New York.

Involved fees earner: Luisa Franciss Galliez – Cleary Gottlieb Steen & Hamilton; Juan Giráldez – Cleary Gottlieb Steen & Hamilton; Ana Gonçalves – Cleary Gottlieb Steen & Hamilton; Diana Balassiano – Paul Hastings LLP; David Flechner – Paul Hastings LLP;

Law Firms: Cleary Gottlieb Steen & Hamilton; Paul Hastings LLP;

Clients: Bank of America Securities; BNP Paribas Securities; Credit Agricole Securities (USA) Inc.; Goldman Sachs Bank Europe; J.P. Morgan Securities LLC; Mizuho Securities; MUFG Securities Americas Inc. ; Rabo Securities; Scotia Capital Inc.; SMBC Nikko Securities America; Suzano Austria GmbH; Suzano S.A.;