Brazilian chemical company Braskem SA has utilized its $1 billion credit facility amid a downturn in the petrochemical industry and growing investor concerns, according to sources familiar with the matter.
Braskem has fully utilized its $1 billion credit facility amid debt pressure.
This is the first time the company has accessed the facility, which was signed in 2021. The sources added that they were not authorized to discuss the matter publicly.
Braskem declined to comment
The unsecured loan, provided by a syndicate of banks, expires at the end of next year. According to sources, the company has already begun negotiations to extend the facility, seeking to avoid the need to provide collateral.
Braskem, majority-owned by Petrobras and Novonor (formerly Odebrecht), is facing pressure: demand for petrochemical products remains weak, and liabilities related to the environmental disaster in Alagoas continue to mount. Last week, the company announced it had hired external consultants to “optimize” its finances, which investors interpreted as preparations for a debt restructuring. Following this news, Braskem shares plummeted.
