MUFJ announces $30m stock investment in euglena for SAF site

Mitsubishi UFJ  (MUFJ) Trust and Banking Corporation has announced plans to invest up to $30m preferred shares issued by Euglena Sustainable Investment Limited (ESIL), an overseas special purpose company of euglena Co.

MUFJ Trust and Banking Corporation will participate in a project to build and operate a biofuel production plant in Malaysia through euglena Co’s ESIL, and will support the construction of a supply chain for SAF.

This investment agreement aims to support the acquisition of SAF interests in Japan, where a supply shortage is expected in the future, and to promote the spread of SAF.

euglena is developing the project in collaboration with Malaysia’s PETRONAS and Italy’s Enilive with the aim of commercialise biofuel business.

Earlier in December 2024, euglena acquired a 5% investment in the Malaysian joint venture company for the construction and operation of the biofuel production plant. The JV, called Pengerang Biorefinery, will produce SAF and other biofuels at PETRONAS’ Pengerang Integrated Complex (PIC) by processing 650,000 tonnes of using used cooking oil, animal fats, by-products from vegetable oil processing, and in the future, biomass raw materials such as microalgae oil.

The site will have maximum production capacity of 12,500 barrels per day – equivalent to 725,000 kilo liters per annum.

The securities to be issued by ESIL through this investment agreement are non-voting debt preferred shares and MUFJ Trust and Banking Corporation will establish a financing facility to invest up to a maximum of $30m in stages at the request of ESIL.

euglena has invested approximately $50m in common stock in ESIL during 2024, and plans to gradually contribute funds using ESIL’s cash on hand and this facility in response to the capital needs of the joint venture.

Mizuho Securities is acting as financial advisor to euglena Co. for the design of this Facility and the conclusion of this investment agreement.