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Nature loss

JBS new issuance after US listing

Written by Josephine Richardson

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JBS, the world’s largest meat producer — and a company familiar with controversy — returned to market in June with a $3.5bn bond issuance. This appears to be designed to extend it debt maturities as far out as 2066. While pricing appeared in line with its earlier 2025 deals, investor appetite showed signs of softening, with book cover ratios lagging market averages, particularly for the long-dated tranches.

The issuance comes against a backdrop of sustained ESG concerns. JBS faces ongoing litigation over its climate pledges, persistent governance and corruption allegations, and scrutiny over deforestation links in its supply chain. Our analysis estimates that nearly 3% of JBS bonds sit within ESG funds. These holdings could come under pressure as these controversies intensify.

In addition, as investors focus more closely on methane abatement, agriculture companies like JBS could come under the microscope, adding to bondholders’ potential troubles.

About the author

Josephine Richardson

Josephine Richardson

Managing Director, Head of Research

Based in London, Jo leads AFII’s research and a global team supporting fixed income investors as they align their portfolios with climate and sustainability goals. She joined AFII after 18 years in fixed income markets at JPMorgan.

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