Clifford Chance

Clifford Chance advises on DFC-guaranteed bond for sustainable public infrastructure in Rio de Janeiro

Leading international law firm Clifford Chance advised United States International Development Finance Corporation (DFC) in connection with its guarantee of BRL 925 million 12.250% Senior Secured Notes due 2032 issued by Rio Smart Lighting S.à r.l. pursuant to Rule 144A and Regulation S. The proceeds from the sale of the notes were used to purchase Brazilian infrastructure debentures (the Debentures) issued by Smart RJ Concessionária de Iluminação Pública SPE S.A. (Smart Luz), a project company involved in the operation and management of the public lighting system for the city of Rio de Janeiro (the Project).

Smart Luz will apply the proceeds from the sale of the Debentures to finance the capital expenditures required for the Project. In addition to replacing luminaires and lampposts, Smart Luz will install wifi spots, security cameras and traffic light and waste sensors across the city, as well as special lighting systems in beach boardwalks, parks, historic buildings, monuments and cultural and tourist spots.

Smart Luz has developed a sustainability framework in line with the International Capital Markets Association's Sustainability Bond Guidelines 2021, Green Bond Principles 2021 and Social Bond Principles 2021. The Project is expected to improve public safety, traffic, sewage control, energy efficiency and wireless connectivity and reduce energy consumption, system failures, light pollution and skyglow at night.

Lead partner Lori Bean commented, "We're proud to have supported our long-time client DFC and pleased we could bring together an international team to work on a transaction in support of sustainable infrastructure in Rio."

Working with Lori on the transaction was a multi-jurisdictional team in:

• New York: partners Avrohom Gelber and Paul Koppel, associate Mariana Estévez and foreign law clerk Ximena López
• Luxembourg: partner Marc Mehlen and juriste Marie-Elise Gueble
• Amsterdam: counsel Nolan Groenland and associate Robin Houtveen
• São Paulo: associate Patricio Abal