Klabin lands $150M loan from Canada's EDC to manage its debt
What's the deal? Brazilian paper and pulp maker KlabinDealroom has a profile for this one. Try Dealroom → has secured a $150 million term loan from Export Development Canada (EDC)Dealroom has a profile for this one. Try Dealroom →, the Canadian government's export credit agency. The financing, signed November 9, carries an all-in cost of SOFR plus 1.77% a year, with repayments due in the sixth and seventh years.
Why now? Klabin described the deal as part of its continuing effort to manage debt and optimise its capital structure. It did not specify how it will use the proceeds.
What's the endgame? The loan extends Klabin's debt maturity profile at a time of elevated leverage. The company reported net debt of about US$6.14B and leverage of 3.3x at the end of the third quarter of 2026, with an average debt maturity already at 82 months.
The EDC facility is the latest in a run of liability management moves. In October, Klabin refinanced the project debt behind its Puma II pulp and paper complex — its largest investment to date — extending maturities to 2033 and 2034 and repricing the loans at SOFR plus 2.04%.
The signal: The deal looks like incremental refinancing rather than a change in strategy, as Klabin enters what it has called a "colheita," or harvest, phase and defers major new investments. With costs rising — third-quarter cash cost per tonne climbed 12% year on year — stretching out maturities buys the company room while margins stay under pressure.
Read more: financenews.com.br
Image credit: Generated with Gemini
