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Atlantic Energias Renováveis S.A. Completes Loan Financing and First-Ever Total Credit Guarantee for Santa Vitoria do Palmar Wind Farm in Brazil

Sao Paulo -- Paul Hastings LLP, a leading global law firm, represented the sponsors, issuer and project companies in the financing of a 207MW wind farm located in the south of Brazil – a project valued at a R$ 1.4 billion.  The project is currently under development by wholly-owned subsidiaries of Santa Vitória do Palmar Energias Renováveis (SVP), a subsidiary of Atlantic Energias Renováveis, which is part of the Actis investment fund group.

In addition to the loan financing, the transaction involved a R$ 125 million (approximately US$ 33 million) Total Credit Guaranty (TCG) issued by IDB Invest on behalf of the Inter-American Development Bank. The TCG is in connection with a debenture issuance by SVP in the Brazilian market, and marks the first time that IDB Invest has provided a guarantee in Reais for a renewable energy project. The nature and structure of the TCG differs from the traditional short-term construction completion guarantees and marks the first time that a product of this type was structured in the Brazilian market.

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The financing will support a 207MW wind farm project located in the south of Brazil. 

The Paul Hastings team was led by Latin America and Energy and Infrastructure partner Roberta Bassegio, based in São Paulo, and also included foreign associate Bruna Rey, based in New York.

The issuance with the full wrap of the IDB guarantee was rated AAA (local) by Fitch. The financing consisted of the local debentures issuance and loans provided by Brazilian development banks BNDES and BRDE.

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