A green bond – such as the one issued by Fibria in January 2017 – was designed to fund projects and assets that have positive impacts on the environment and on climate. Thus, through the green bond, companies, investment banks, and governments raise funds to implement or refinance projects or assets with positive environmental or climate impacts. The bonds may take the form of any debt securities – such as debentures, notes, and financial bills. The only difference is the destination of the resources.
Green bonds attract investors who take social and environmental factors into account in their decisions, known as Socially Responsible Investors (SRI). In Fibria’s case, 40% of the investors who bought the green bond were SRIs.
The next section contains more information on this issuance, which is in line with our long-term sustainability goals and the company’s economic performance in 2017.
The year 2017 was good for Fibria, and may be summarized in several points: significant increase in production, record sales, lower costs, and a significant reduction in leverage. Supported by increased production capacity, as a result of the start-up of the second production line in Três Lagoas (Mato Grosso do Sul state), and by a heated global pulp market, these results reinforced our financial soundness, as evidenced by the improved credit conditions and the investment grade assigned to Fibria by two international rating agencies.
At the end of 2017, Fibria’s BBB- rating was confirmed by the rating agencies Standard & Poor’s (S&P) and Fitch. The confirmation was accompanied by an improvement in the company’s outlook, according to ratings from both agencies: S&P changed Fibria’s outlook from Negative to Stable, and Fitch made the change from Stable to Positive. The changes, in both cases, maintain Fibria’s assessment within the Investment Grade.
*Includes 50% of Veracel’s pulp production
The second production line in Três Lagoas, which began operation in August 2017, produced 435,000 tons of pulp in the fourth quarter of the year. The result contributed to a total production of
1.659 million tons in the
fourth quarter of 2017 – an increase of 36% over the fourth quarter of 2016.
In the final three months of 2017, Fibria sold the largest volume ever marketed in a quarter in the company’s history: 1.897 million tons of pulp, 20% more than the same period in 2016. Net revenue in the period of BRL
was 60% higher than in the final quarter of 2016.
Wood yard in Aracruz (Espírito Santo state)
Photo: Marcio Schimming
The new Três Lagoas (Mato Grosso do Sul state) mill accounted for
of all excess energy generated and marketed in the fourth quarter of 2017
Fibria’s policy establishes that, at the time of investment, the value of the company’s leverage indicator may reach a maximum of 3.5 times. Thus, the reduction of the indicator to
when there are still disbursements related to the second production line in Três Lagoas is a demonstration of the company’s discipline concerning its commitments.
Photo: Araquém Alcântara
Following the issue of our first green bond in January 2017, debt securities in the amount of USD 700 million to finance projects to maintain planted forests, conserve protected forests, and restore degraded areas, Fibria carried out a new issue on the global market. This time, conventional securities in the amount of USD 600 million, maturing in seven years and a coupon of 4% per year.
This financial strategy, supported by other operations, such as the first-time issue of Agribusiness Receivables Certificates (CRA – Certificados de Recebíveis do Agronegócio), will allow the average term of the company’s debt to be extended by one year, maintaining a low average cost. In this way, we will be able to accelerate our deleveraging, supporting a financial soundness that will allow us great flexibility in capital allocation in the near future.
|Net revenue from sales (BRL million)||10,081||9,615||11,739|
|Net income (BRL million)||357||1,664||1,093|
|Assets (BRL million)||29,434||34,440||38,693|
|Net equity (BRL million)||12,815||13,818||14,650|
|EBITDA (BRL million)||5,337||3,742||4,952|
|Net Debt /EBITDA UDM (USD)||1.78||3.30||2.41|
|Pulp production (thousand tons)||5,185||5,021||5,642|
|Pulp sales (thousand tons)||5,118||5,504||6,212|
|Market cap (BRL billion)||28.7||17.7||26.5|
|Production cash cost (BRL/ton)||618||680||637|
|Price of shares – FIBR3 (BRL)||51.9||31.9||47.9|
|Consolidated (in thousand reais)||2015||2016||2017|
|Gross sales of products and services (less returns)||10,281,877||9,838,796||12,006,228|
|Write-back (provision) for deterioration of credits receivable||1,645||470||325|
|Revenue associated with the construction of own assets and other||1,719,194||2,689,336||3,191,739|
|Inputs acquired from third parties|
|Cost of products and services sold (includes raw materials)||(4,819,669)||(7,201,273)||(8,449,466)|
|Materials, energy, third-party services, and other||(533,212)||(579,661)||(647,354)|
|Gross value added||6,649,835||4,747,668||6,101,472|
|Depreciation, amortization, and depletion||(1,827,097)||(1,922,741)||(2,149,305)|
|Depletion of wood from partnership operations||(65,141)||(60,702)||(55,692)|
|Net value added||4,757,597||2,764,225||3,896,475|
|Value added received in transfer|
|Results of equity accounting||393||(751)||49|
|Financial revenue and active exchange variations||1,701,679||4,351,159||2,249,931|
|Deferred income tax and social insurance contribution||1,202,172||0||–|
|Total value added for distribution||7,661,841||7,114,633||6,146,455|
|Value added distribution|
|People and payroll charges||727,641||752,912||880,530|
|Government Severance Indemnity Fund (FGTS)||28,764||32,961||39,125|
|Taxes, fees and contributions||1,051,439||1,798,405||952,455|
|Accrued interest, passive exchange variation and leases||5,525,776||2,899,700||3,220,126|
|Retained profit (loss in the period)||260,916||1,261,822||827,515|
|Interests of noncontrolling shareholders||14,800||8,768||8,079|
|Value added distributed||7,661,841||7,114,633||6,146,455|