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Clifford Chance advises on first issuance of Reais-denominated guaranty in Brazil by IDB Invest

16 October 2018

Clifford Chance advises on first issuance of Reais-denominated guaranty in Brazil by IDB Invest

Clifford Chance's leading Project Finance team has advised the Inter-American Development Bank (IDB) and the Inter-American Investment Corporation (IDB Invest) in connection with the first issuance by IDB Invest of a Reais-denominated guaranty of Brazilian infrastructure bonds and the second such issuance by IDB. The bond issuance was more than two times oversubscribed and received a AAA rating in Brazil, demonstrating continued interest from investors and promotion of development financing. The bond issuance is being used to finance the Pirapora project, which is a 191.54MWp solar PV project and related transmission and interconnection infrastructure in Pirapora, State of Minas Gerais, Brazil.

Brazilian state development bank BNDES is also providing financing for the project, while UK-based EDF Energy and Canadian Solar are sponsors.

Washington, DC-based partner Kate McCarthy, senior associate Laura Marriott and associate Lauran Smith advised IDB and IDB Invest.

A Clifford Chance team previously advised IDB on the first ever issuance of a Reais-denominated guaranty of Brazilian infrastructure bond for the Santa Vitória do Palmar project, which is a 207 MW portfolio of wind farms and related transmission infrastructure in the state of Rio Grande do Sul, Brazil. That bond offering was nearly five times oversubscribed, reflecting investor interest and excitement.

Clifford Chance's LatAm team is frequently recognized for developing sophisticated, multisource financings, both through project finance and bond structures and securitization schemes that involve a combination of commercial banks, multilateral lending agencies and the bond markets. As the first international law firm to open an office in São Paulo, Clifford Chance has a decades' long track record of advising on successful and innovative financing structures across the entire Latin American region. The Firm's dedicated Energy & Infrastructure team is comprised of bilingual and culturally fluent lawyers who understand Latin America's distinct business, legal and regulatory landscapes, as well as the evolving needs of a diverse client base. The group regularly works across borders and practices on matters involving project development and the delivery of new finance and capital markets structures.