This is the third element in a financial restructuring of Rumo following its merger with Latin American Logistics (ALL) in 2015. In March Rumo reached an agreement with six banks to repay Reais 2.9bn of its Reais 8.58bn of debt between now and 2018. This was followed in April by a capital injection of Reais 2.6bn. As a result, international rating agency Fitch raised Rumo Logistics’ rating outlook from BB- negative to stable.

Rumo now plans to use the funds to acquire 170 locomotives, 2307 freight wagons, double and upgrade sections of track on its main freight corridors, and improve working conditions for its employees.

Rumo currently operates a fleet of around 1000 locomotives and 24,000 wagons on its 12,000km network serving the ports of Santos, Paranaguá, São Francisco, and Rio Grande. Rumo increased tonne-km by 3.1% in the first half of 2016 to 20.91 billion from 20.29 billion in 2015. First-half net revenue rose by 17% to Reais 2.56bn from Reais 2.19bn last year, while first-half Ebitda increased by 15% to Reais 1bn and gross profit grew by 8% to Reais 783m.