Bunge Ltd., White Plains, N.Y., and BP plc on Dec. 2 announced that they have completed the formation of BP Bunge Bioenergia, a Brazilian bioenergy joint venture that combines their Brazilian bioenergy and sugarcane ethanol businesses (GM July 26, p. 29). The parties report that BP Bunge Bioenergia is now the second largest operator by effective crushing capacity in the Brazilian bioethanol market.
As part of the transaction, Bunge received cash proceeds of $775 million, comprising $700 million of non-recourse Bunge debt that was assumed by the jv at closing, and $75 million from BP, before customary closing adjustments. The proceeds were used to reduce outstanding indebtedness under the company’s credit facilities.