Banco BTG Pactual funds will invest $1.05 billion in Raízen's fuel distribution arm as Shell and Cosan advance their recapitalization plan for the Brazilian joint venture. The transaction forms part of a broader restructuring to stabilize Raízen's balance sheet following financial pressures from rising borrowing costs and weaker harvests.

The struggling energy company faces significant liquidity challenges after heavy capital expenditures strained its finances. Under the restructuring plan, Raízen will separate its sugar and ethanol production unit from fuel distribution operations, with approximately 35% of debt convertible to equity. Asset sales and share offerings will provide potential exit routes for creditors.

Current shareholders plan a capital increase of R$3bn to R$5bn, with Shell potentially injecting R$1.5bn to R$3.5bn. Cosan may contribute R$1bn, while founder Rubens Ometto could invest an additional R$500m. UBS previously estimated Raízen may require R$20bn to R$25bn in fresh capital to restore financial stability.