by Thomas Muskett-Ford

Souza, Cescon, Barrieu & Flesch Advogados has helped a subsidiary of Brazilian infrastructure company CCR obtain a three-tranche credit line worth 2.8 billion reais (US$847 million) to fund an 845-kilometre motorway project in the western state of Mato Grosso do Sul.

State-owned development bank BNDES, which is providing the majority of the funding, relied on its in-house team, while co-lender Caixa sought assistance from Machado, Meyer, Sendacz e Opice Advogados. The deal closed on 12 September.

Financing for the massive highway project was granted in three parts. BNDES provided the largest tranche, contributing a 2 billion reais loan to CCR subsidiary Concessionaria de Rodovia Sul-Matogrossense. It also provided finance worth 210 million reais through an on-lending agreement with Caixa. Caixa, Brazil´s second biggest state-run bank after Banco do Brasil, also executed a 527 million reais credit line with Rodovia Sul-Matogrossense. The financing package is secured by a fiduciary assignment of credit rights, waterfall payment provisions and a share pledge agreement.

Rodovia Sul-Matogrossense will use the funds to build a highway stretching across the entire state of Mato Grosso do Sul, which is located in Brazil´s interior and borders Bolivia and Paraguay. The 30-year concession is expected to cost 5.5 billion reais to complete and is considered vital to modernising the country´s agribusiness trade.

Counsel to CCR and Concessionaria de Rodovia Sul-Matogrossense

In-house counsel - Juliana Simões Dias

Souza, Cescon, Barrieu & Flesch Advogados

Partner Parner Fernando Gomes and associates Carla Rossi and Bruna Nogata

Counsel to BNDES

In-house counsel - Henrique Castro de Andrade

Counsel to Caixa Econômica Federal

In-house counsel - Luiz Fernando Barreto

Machado, Meyer, Sendacz e Opice Advogados

Partners José Prado and Adriano Schnur, and associates Pedro Henrique Jardim, Fernanda Curry Messias and Emily Oliveira Correia

(Latin Lawyer - 21.09.2016)

(Notícia na íntegra)