Once-Wary Bondholders Now Support $2.5 Billion Fibria Expansion
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After spending the past six years reducing debt to regain its investment grade, Fibria Celulose SA is now embarking on a $2.5 billion expansion.
But far from facing push-back from bondholders, the Sao Paulo-based company is winning them over. Fibria’s $600 million of notes due in 2024 climbed to a record, pushing down yields to as low as 4.83 percent, after the company said on May 14 it will add a production line to tap into growing Chinese demand for pulp products like tissue and toilet paper.