Bunge Ltd. (BG), the world’s second- largest sugar trader, plans to invest $2.5 billion in Brazil over five years to boost output of the sweetener and ethanol by almost half. Bunge may sell bonds to help pay for the investment and doesn’t plan to issue shares, Chief Executive Officer Alberto Weisser said yesterday at a press conference in Sao Paulo. Most of the spending will be funded with cash, he said. “We are very positive on the sugar and ethanol outlook,” Weisser said. “Our investments come at the right moment, as the world is yearning for food and clean energy.” Bunge plans to invest the cash between 2012 and 2016 to boost capacity at eight mills in Brazil, the world’s largest sugar producer and exporter. The plan will boost sugar-cane crushing capacity to 30 million metric tons a year from 21 million tons now, the White Plains, New York-based company today said in a statement. The company may also consider producing corn-based ethanol in Argentina, Weisser said. To contact the reporter on this story: Lucia Kassai in Sao Paulo at lkassai@bloomberg.net To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net.

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