Bunge Global SA (NYSE: BG) has taken a significant strategic step forward with the announcement of a $2 billion Term Loan Agreement through its wholly owned subsidiary, Bunge Limited Finance Corp. (BLFC), dated June 30, 2025. This financing move is directly tied to Bunge’s planned acquisition of Viterra Limited, a transaction expected to reshape the company’s competitive landscape and enhance its global market position.
The Term Loan Agreement, administered by Sumitomo Mitsui Banking Corporation, commits lenders to provide $2 billion in term loans maturing on June 1, 2028. The proceeds are earmarked for funding the Viterra acquisition, repaying a portion of Viterra’s existing debt facilities, and covering associated fees and expenses. The loans bear interest based on the Secured Overnight Financing Rate (SOFR) plus a margin or an alternate base rate, reflecting current market conditions.
From a financial perspective, Bunge’s FY 2024 total revenue stood at approximately \(53.1 billion, with total liabilities of \)13.95 billion and long-term debt of \(4.69 billion. The company's debt-to-equity ratio was 1.52, indicating a leveraged capital structure, while its EBIT interest coverage ratio of 4.24 suggests a solid ability to service debt obligations. The new \)2 billion term loan will increase Bunge’s debt load, but given its current financial metrics, the company appears well-positioned to manage this additional leverage.
This acquisition aligns with Bunge’s strategic growth initiatives discussed in previous earnings calls, where management emphasized the importance of expanding global scale and operational efficiency. CEO Greg Heckman highlighted in the Q1 2025 earnings call, “We continue to believe in the strategic merits of our planned combination with Viterra and expect to close the transaction in the near term,” underscoring management’s confidence in the deal’s value creation potential.
The Term Loan Agreement includes customary covenants restricting BLFC’s ability to incur additional liens, debt, or engage in mergers without lender approval, ensuring financial discipline post-acquisition. Bunge also guarantees the obligations under the loan, reinforcing its commitment to the transaction’s success.
Looking ahead, the Viterra acquisition is expected to enhance Bunge’s market share and operational capabilities, potentially driving revenue growth beyond the $53.1 billion reported in FY 2024. While the increased debt will impact the balance sheet, the strategic benefits and anticipated synergies could improve profitability and cash flow generation, supporting debt servicing and shareholder value creation.
For investors and market analysts, this development signals Bunge’s proactive approach to capital allocation through strategic M&A, leveraging debt financing to fuel growth in a competitive agribusiness sector. Monitoring the integration progress and financial performance post-acquisition will be critical to assessing the long-term impact on Bunge’s financial health and market position.
Source Document: Bunge Global SA 8-K Report June 30 2025
Tags: BG, Bunge Global SA, FY2025, Viterra Acquisition, Term Loan Agreement, Agribusiness Mergers