by Vincent Manancourt

Machado, Meyer, Sendacz e Opice Advogados in São Paulo and Norton Rose Fulbright in London have helped Luxembourg climate fund Althelia Ecosphere invest in a pilot scheme to increase cattle production and restore degraded ranch land in the Amazon.

Brazilian sustainable cattle-rancher Pecuária Sustentável da Amazônia (Pecsa) will use the 11.5 million euro (US$12.6 million) loan to pilot a farming system that aims to quadruple cattle production while restoring up to 10,000 hectares of degraded and deforested ranch land in the state of Mato Grosso. Pecsa is not thought to have employed external counsel for the deal, which closed on 30 June.

Pecsa will repay Althelia using proceeds of beef sales. Should the one-year pilot scheme prove successful, Althelia will invest between US$200 million and US$500 million to expand the programme to include 1.4 million hectares of degraded ranch land.

Althelia, which is backed by Credit Suisse and the European Investment Bank, is thought to be the only European fund investing in sustainable cattle ranching in Brazil. The fund expects an annual return of between 10 and 15 per cent from this project.

Cattle ranching is the primary driver of forest destruction and land degradation in the Brazilian Amazon, with 79.5 per cent of deforested land used for cattle pasture and slaughterhouses in Mato Grosso.

Counsel to Althelia Ecosphere

Norton Rose Fulbright

Consultant Andrew Hedges and associate Ann Veseley in London

Machado, Meyer, Sendacz e Opice Advogados

Partner José Virgílio Lopes Enei and associate Larissa Santiago Gebrim in São Paulo

(Latin Lawyer - 26.07.2016)

(Notícia na íntegra)