Clifford Chance

Clifford Chance advises BNDES on largest-ever secondary offering of shares in Brazil

Clifford Chance in New York and São Paulo advised BNDES, The Brazilian Development Bank, on its sale of approximately 724 million common shares in the state-owned oil company Petrobras. The offering comprised both common shares in Brazil and abroad and ADRs, and is valued at approximately US$5.2 billion. Shares were listed on stock exchanges in both São Paulo and New York. Closing occurred on February 10.

This was the largest follow-on equity offering in 2020 to date globally, and the largest-ever secondary offering of shares in Brazil. The divestment by BNDES is part of its, and the Brazilian federal government’s larger strategy to reduce its stock portfolio.

Since 1952, BNDES remains the main financing agent for development in Brazil and finances the expansion of national companies far beyond the borders of the country and seeks to diversify the sources of its resources on the international market.

São Paulo-based counsel Patrick Jackson who played a leading role in the matter commented, "We are grateful for the opportunity to advise BNDES, a long-time client of the Firm, on this very important transaction. With shares listed on Brazilian and US exchanges, and with our team's presence in both countries, we were able to help ensure that the transaction was seamlessly concluded."

Along with Patrick, the Clifford Chance team was led by partner Anand Saha in New York. Associate Teo Pastor and staff attorney Mariana Urban in São Paulo and foreign law clerk Giancarlo Reanda in New York assisted on this matter.

Clifford Chance has been recognized for decades as a preeminent law firm in Latin America and was the first international law firm to open an office in São Paulo. The Firm has led 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.