Clifford Chance

Clifford Chance advises Klabin on two credit agreements to raise US$1,045,000,000

Clifford Chance advised Klabin as the borrower in relation to a combined US$800,000,000 loan provided by the Lenders, the Inter-American Investment Corporation (on its own behalf and also as administrator of the China Co-Financing Fund for Latin America and the Caribbean), the Inter-American Development Bank and the International Finance Corporation, and from Santander, Rabobank, HSBC, SMBC, CACIB, BNPP, Sumitomo Mitsui Trust Bank and KEB Hana. An additional ECA is expected to join the funding group in the coming months. The loan was signed on October 31, 2019 and will be used to expand Klabin's existing pulp and paper facility, increase its cogeneration capacity and install certain waste and water treatment and gasification plants in Brazil.

Clifford Chance also advised Klabin as the borrower in relation to a US$245,000,000 credit agreement which was signed on October 15, 2019. The credit was provided by the Finnish Export Credit Ltd ("Finnvera"). HSBC acted as the ECA Coordinator and Environmental Bank, HSBC, Credit Agricole and Banco Santander acted as the Joint Mandated Lead Arrangers. The loan will be used to finance the supply, installation and commissioning of equipment supplied in the construction of a new kraftliner paper machine.

These two loans, together with a R$3 billion loan Klabin has recently closed with Brazilian development bank BNDES, will finance Klabin's Puma II project, expanding its containerboard production facilities to meet increasing global demand.

The Clifford Chance team was led by partner Chris Willott in New York and included counsel Patrick Jackson, associate Tom Hosted and trainees Sophie Scholl and Mollie MacGinty all based in the Firm's São Paulo office.

Clifford Chance has been recognized for decades as a preeminent law firm in Latin America. The Firm was the first international law firm to open an office in São Paulo and is among the most prominent in Brazil. The Firm has led the way in developing successful, novel financing structures for a diverse client-base, and is constantly innovating its service offering, such as with a dedicated Latin America group specialized in capital markets, bank and project financing structures representing initial purchasers, underwriters, issuers and investors. The Firm's lawyers have extensive experience in the region's distinct business, legal and regulatory landscapes. They provide expertise that cuts across a full range of relevant practices, while aligning pioneering solutions with the unique characteristics of the Latin American market and the changing needs of clients.