S&P gives Klabin notes BB+

S&P said it gave its BB+ issue-level rating and recovery rating of 3 to Klabin Austria GmbH’s proposed senior unsecured notes due 2031. Klabin Austria is a subsidiary of Klabin SA, rated BB+, which will guarantee the notes.

“According to the terms of the notes, if Klabin doesn’t satisfy its sustainability performance targets of water consumption intensity equal to or less than 3.68 m3/t, waste reuse equal to or above 97.5%, and reintroduction or reinforcement of at least two regionally extinct or threatened species into the ecosystem in 2025, the interest rate payable on the notes will increase by up to 25 basis points from January 2026 until the notes’ maturity,” S&P said in a press release.

Klabin intends to use the proceeds to repay Klabin Finance SA’s 2024 notes and for general corporate purposes. “This will extend the company’s debt maturity profile, with no changes in terms of seniority in its capital structure,” S&P said.

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