Clifford Chance

Clifford Chance advises on succession of high-profile debt deals in Brazil

New York: Leading international law firm Clifford Chance advised on three sustainability-related transactions and one subordinated debt issuance in Brazil with a combined deal value of more than US$2 billion.

The firm advised Brazilian pulp and paper producer Klabin on its issuance of US$500 million sustainability-linked 3.200% notes due 2031; BTG Pactual, Citigroup, Credit Agricole, GS, Itau BBA and J.P. Morgan on the issuance by Brazilian bank Itaú Unibanco of US$500 million 3.875% Tier 2 Subordinated Notes due 2031 with ESG-linked use of proceeds; Goldman Sachs, Itau BBA and Santander on Brazilian bank Banrisul's US$300 million 5.375% Subordinated Notes due 2031; and BNP Paribas, Bradesco, Citigroup, Itau BBA, J.P. Morgan, Rabobank, Santander and UBS on the inaugural issuance of US$750 million 5.250% sustainability-linked Notes due 2028 by Amaggi, one of the largest vertically-integrated agribusiness companies in Latin America

A focus on sustainability

The issuance by Itaú Unibanco is the first offering of subordinated notes out of Brazil with use of proceeds to finance sustainable projects. Klabin is the second Latin American company to offer sustainability-linked bonds in the international market. The company was an early starter in sustainability-related financings, issuing US$500 million of green bonds in 2017. Amaggi will use the proceeds from its first issuance in the international market to finance and refinance eligible sustainable projects. The company seeks to promote sustainable development through clean energy projects and responsible grain origination.

The teams advising on these mandates were led by partners Jon Zonis and Anand Saha in New York and partner Anthony Oldfield and counsels Anja Pfleger Andrade and Patrick Jackson in São Paulo. The full teams advising across the four transactions are below.

Zonis says, "We are seeing increased interest in sustainable investment in the region, which reflects heightened shareholder interest on Environmental, Social and Governance (ESG) strategies in the market. We have been able to draw on our deep expertise in the LatAm market to bring these transactions to fruition."

Jackson adds, “Klabin has pledged to reduce its use of natural resources, increase its recycling of water and solid waste and reintroduce water species in local ecosystems," and Andrade continues, "Amaggi has a long track record for running a sustainable business. We are delighted to support Brazilian companies in promoting environmental advancement in the region.”

Klabin sustainability-bond issuance team

• Anthony Oldfield, Partner, São Paulo
• Patrick Jackson, Counsel, São Paulo
• Shane Meckler, Associate, São Paulo

Itau Unibanco issuance team

• Jon Zonis, Partner, New York
• Anthony Oldfield, Partner, São Paulo
• Anja Pfleger Andrade, Counsel, São Paulo
• Shane Meckler, Associate, São Paulo
• Teo Pastor, Staff Attorney, São Paulo

Banrisul issuance team

• Jon Zonis, Partner, New York
• Anja Pfleger Andrade, Counsel, São Paulo
• Shane Meckler, Associate, São Paulo
• Mariana Urban, Staff Attorney, São Paulo

Amaggi green bond team

• Anand Saha, Partner, New York
• Anja Pfleger Andrade, Counsel, São Paulo
• Teo Pastor, Staff Attorney, São Paulo
• Lewis Whiteoak, Trainee, São Paulo

Clifford Chance advises on many of the landmark transactions in the Latin American market. Most recently, the firm advised IDB Invest in connection with the R$950 million financing to Companhia de Saneamento Básico do Estado de São Paulo, the largest water and sanitation company in Latin America. The firm also advised Solaria Energía y Medio Ambiente S.A in connection with the approximately US$29 million B-Bond refinancing of the Natelu and Yarnel solar plants in Uruguay.