JBS, the world’s largest meat processor, has reached a deal with a number of banks to stabilise the spiralling cost of servicing its debts. In a securities filing to financial markets, JBS said it had reached an agreement with financial institutions to extend the original borrowing terms of the $6.5bn (€5.6bn) in debts owed by its subsidiary company, JBS Brazil, for one year.Under the terms of this deal, JBS Brazil will continue paying interest on its borrowings, as well as four instalments of 2.5% of the total value of the loans over the next 12 months.
JBS, the world’s largest meat processor, has reached a deal with a number of banks to stabilise the spiralling cost of servicing its debts. In a securities filing to financial markets, JBS said it had reached an agreement with financial institutions to extend the original borrowing terms of the $6.5bn (€5.6bn) in debts owed by its subsidiary company, JBS Brazil, for one year.
Under the terms of this deal, JBS Brazil will continue paying interest on its borrowings, as well as four instalments of 2.5% of the total value of the loans over the next 12 months.
JBS says this deal with banks covers about 93% of the total borrowings of its subsidiary JBS Brazil, which the company says will stabilise the short-term indebtedness of the group and ensure financial liquidity.
In a separate deal, JBS said it has renewed borrowing terms for 60% of its $380m (€325m) in loans with another Brazilian bank, Itaú Unibanco. The remaining 40% of this loan will be repaid under the original borrowing terms.
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