Inpasa, one of Brazil’s larger players in corn and sorghum based ethanol, has managed to pull in 1 billion reais (about $173 million) via its sixth debenture issue to help bankroll a big expansion of its industrial complex in Sinop, Mato Grosso.
The plan is to more or less double the present production ability in Sinop, and, per a filing submitted to the Brazilian Securities and Exchange Commission (CVM), turn the area into the biggest ethanol production hub on Earth. This stretch project is set to add two new units, each one able to produce 1,350 cubic meters of ethanol every day.
SCALING UP RENEWABLES
The total investment for the new facilities is estimated at 1.64 billion reais. Inpasa plans to fund 97.3% of this amount through securities issuances, with the current 1 billion reais debenture offering covering approximately 60.8% of the total project cost.
Beyond biofuel, the new units will also produce corn oil and Distillers Dried Grains (DDGs), a high-protein byproduct used extensively in animal feed. This diversification allows Inpasa to maximize revenue from the grain processing chain in Brazil’s primary agricultural heartland.
FINANCIAL STRUCTURE
The debentures, coordinated by Itaú BBA, were offered exclusively to professional investors. The securities are simple, non-convertible, and unsecured (chirographic), but carry a guarantee provided by JOL Investimentos e Participações — Inpasa paid 3.1 billion reais ($538 million) in dividends in 2025 to JOL Investimentos e Participações, with its primary operational units located in Sinop and Nova Mutum (MT), and Dourados and Sidrolândia (MS).
Following the bookbuilding process, the final interest rate was set at 7.93% per year.
STRATEGIC GROWTH
Founded in Paraguay in 2006, Inpasa entered the Brazilian market in 2018 with its first plant in Sinop. Since then, it has rapidly expanded across the country, with operational units in the states of Mato Grosso, Mato Grosso do Sul, Goiás, Bahia, and Maranhão.
The expansion comes as Brazil sees a surge in corn-based ethanol production, driven by growing global demand for renewable energy and the increasing industrialization of the country’s record corn harvests. If successful, the Sinop complex will consolidate Mato Grosso's position as a global leader in the grain-to-fuel industry.
