Category: Brazil

US-based law firm Mayer Brown has formed an association with Tauil & Chequer (T&C), the Brazil-based practice, to jointly cover local clients. T&C will practice under the name “Tauil & Chequer in association with Mayer Brown,” while Mayer Brown’s Sao Paulo office will continue to practice under its existing name. “Through T&C, Mayer Brown will offer its global clients legal counsel on Brazilian domestic matters governed by Brazilian law and will increase its resources for advising clients with respect to investments in Africa, notably Angola, where many of T&C’s clients have been active,” says Mayer Brown. T&C’s clients will meanwhile gain access to Mayer Brown’s global platform, including an existing Sao Paulo office that advises clients on matters governed by New York and English law, as well as US securities law. Founded in 2001, T&C has approximately 60 lawyers in Rio and Sao Paulo and has an energy and infrastructure sector focus. “Continued growth in the energy and infrastructure sectors is a top strategic priority for Mayer Brown, and T&C’s strength in this market will contribute greatly to our realization of that goal,” says Stephen Hood, partner in charge of Mayer Brown’s Sao Paulo office.

France’s Alstom has signed a memorandum of intent with the government of the state of Bahia, Brazil, to install its first industrial wind turbine assembly facility in the country. The new facility, based in Bahia, will be dedicated to the assembly of wind turbines with an annual capacity of up to 300MW per year. The estimated investment is BRL50m and under the terms of the memorandum, the new wind turbine assembly facility could enter in operation in early 2011. “With the installation of its first wind turbine assembly in the country, Alstom confirms its strategy in the region and its aim to become a key player in the Brazilian wind market,” says Philippe Cochet, president of Alstom Hydro. “Brazil’s energy market has great potential for the production of alternative electricity,” he adds. Alstom is present in 70 countries and has sales of EUR18.7bn.

Brazilian issuers have this week wrapped up debenture issues tight to initial pricing expectations. Toll-road operator Ecorodovias has priced a 3-tranche BRL600m deal. A BRL460m 2013 pays DI+1.5%, versus a maximum targeted spread of 2.0% over. The other 2 pieces were both BRL70m 2015s paying 8.75%, according to the CVM. Proceeds from the issuance will be used to pay down BRL407m in promissory notes and to capitalize Ecopistas, the company unit that manages and operates the Ayrton Senna-Carvalho Pinto highway system. Ecorodovias, one of the largest highway managers and operators in Brazil, is a unit of Italy’s Impregilo. Itau managed the sale. Elsewhere, energy generation and transmission company Alupar Investimentos has closed a BRL250m non-convertible debenture issue with a BRL232m 2013 at the maximum spread of 1.90% over DI. The balance is a 2014 at 8.95%. Proceeds will go to pay down debt and finance capex. Fitch has a national rating of A and Moody’s has an Aa3 on the issue, which is managed by Itau. Meanwhile, Ampla has priced BRL250m in non-convertible bonds. A BRL115m 2012 tranche pays DI+1.1%, tight to the 1.5% limit, while a BRL135m 2015 came at 8.3%. The issue was managed by Bradesco and Banco Votorantim. Finally, Votorantim Cimentos Brasil, the cement unit of Brazil’s Grupo Votorantim, said Wednesday it had sold BRL1bn in debentures, without giving further details.

Cemig Geracao e Transmissao, a unit of Brazilian utility Cemig, is planning to raise BRL2.7bn by issuing non-convertible debentures in 2 tranches. The first series will mature January 15 2012 and is capped at 1.5% over DI, while the second is due January 15 2015, starts amortizing in 2013, and pays a maximum of 1.5% over the 5-year NTN-B. Bookbuilding is scheduled for January 15. BB Investimentos is lead coordinator, alongside Caixa Economica Federal, HSBC, Votorantim, BES and BTG. Cemig is guaranteeing the deal, whose proceeds are earmarked for refinancing.

The coming year will be an active one for the equity market, according to bankers. “A large pipeline is already building for the first quarter,” says a Brazil-based investment banker. Diversity of scale and sector – following a mixed crop in H2 2009 IPOs – should expand even further, especially in Brazil, where investors see a number of untapped parts of the economy with mature candidates to go public. Already in the queue at the CVM to price next year in Brazil are Multiplus, the frequent flyer program for airline TAM, and Aliansce Shopping centers, the mall holding company that filed in October. A handful of other companies is anticipated, including Ache, the Brazilian drugmaker and BR Properties, the commercial real estate manager partly owned by GP Investments. Also expected is OSX, the Brazilian shipyard company belonging to Eike Batista’s EBX, and Brazilian Finance and Real Estate, the mortgage and securitization specialist. Investors are also clamoring for companies in the infrastructure space. Odebrecht, which privately controls a concession manager, an engineering company and an ethanol specialist, is heard lining up some assets for the public markets. And an important trend ignited by Santander’s BRL14bn IPO in October is the public market spinoff of Brazilian subsidiaries. Bankers claim to be working on more BDR deals for large global players. Spain’s Repsol, among the largest energy concession managers in the country, is heard mulling an offer in Brazil. “You have to have a growth project in Brazil,” says Herculano Anibal Alves, head of the roughly BRL17bn equities arm of Bradesco Asset Management (BRAM). “And if you are seeking equity capital, where else can you find an exchange that can give you liquidity at a fair valuation?” he asks, pointing to the Bovespa. Beyond Brazil, activity is also expected to pick up significantly on top of the small Chilean offerings seen in H2. “I think ex-Brazil will become a much more relevant part of the market next yea

US-based law firm Mayer Brown has formed an association with Tauil & Chequer (T&C), the Brazil-based practice, to jointly cover local clients. T&C will practice under the name “Tauil & Chequer in association with Mayer Brown,” while Mayer Brown’s Sao Paulo office will continue to practice under its existing name. “Through T&C, Mayer Brown will offer its global clients legal counsel on Brazilian domestic matters governed by Brazilian law and will increase its resources for advising clients with respect to investments in Africa, notably Angola, where many of T&C’s clients have been active,” says Mayer Brown. T&C’s clients will meanwhile gain access to Mayer Brown’s global platform, including an existing Sao Paulo office that advises clients on matters governed by New York and English law, as well as US securities law. Founded in 2001, T&C has approximately 60 lawyers in Rio and Sao Paulo and has an energy and infrastructure sector focus. “Continued growth in the energy and infrastructure sectors is a top strategic priority for Mayer Brown, and T&C’s strength in this market will contribute greatly to our realization of that goal,” says Stephen Hood, partner in charge of Mayer Brown’s Sao Paulo office.

France’s Alstom has signed a memorandum of intent with the government of the state of Bahia, Brazil, to install its first industrial wind turbine assembly facility in the country. The new facility, based in Bahia, will be dedicated to the assembly of wind turbines with an annual capacity of up to 300MW per year. The estimated investment is BRL50m and under the terms of the memorandum, the new wind turbine assembly facility could enter in operation in early 2011. “With the installation of its first wind turbine assembly in the country, Alstom confirms its strategy in the region and its aim to become a key player in the Brazilian wind market,” says Philippe Cochet, president of Alstom Hydro. “Brazil’s energy market has great potential for the production of alternative electricity,” he adds. Alstom is present in 70 countries and has sales of EUR18.7bn.

Brazilian issuers have this week wrapped up debenture issues tight to initial pricing expectations. Toll-road operator Ecorodovias has priced a 3-tranche BRL600m deal. A BRL460m 2013 pays DI+1.5%, versus a maximum targeted spread of 2.0% over. The other 2 pieces were both BRL70m 2015s paying 8.75%, according to the CVM. Proceeds from the issuance will be used to pay down BRL407m in promissory notes and to capitalize Ecopistas, the company unit that manages and operates the Ayrton Senna-Carvalho Pinto highway system. Ecorodovias, one of the largest highway managers and operators in Brazil, is a unit of Italy’s Impregilo. Itau managed the sale. Elsewhere, energy generation and transmission company Alupar Investimentos has closed a BRL250m non-convertible debenture issue with a BRL232m 2013 at the maximum spread of 1.90% over DI. The balance is a 2014 at 8.95%. Proceeds will go to pay down debt and finance capex. Fitch has a national rating of A and Moody’s has an Aa3 on the issue, which is managed by Itau. Meanwhile, Ampla has priced BRL250m in non-convertible bonds. A BRL115m 2012 tranche pays DI+1.1%, tight to the 1.5% limit, while a BRL135m 2015 came at 8.3%. The issue was managed by Bradesco and Banco Votorantim. Finally, Votorantim Cimentos Brasil, the cement unit of Brazil’s Grupo Votorantim, said Wednesday it had sold BRL1bn in debentures, without giving further details.

Cemig Geracao e Transmissao, a unit of Brazilian utility Cemig, is planning to raise BRL2.7bn by issuing non-convertible debentures in 2 tranches. The first series will mature January 15 2012 and is capped at 1.5% over DI, while the second is due January 15 2015, starts amortizing in 2013, and pays a maximum of 1.5% over the 5-year NTN-B. Bookbuilding is scheduled for January 15. BB Investimentos is lead coordinator, alongside Caixa Economica Federal, HSBC, Votorantim, BES and BTG. Cemig is guaranteeing the deal, whose proceeds are earmarked for refinancing.

US-based law firm Mayer Brown has formed an association with Tauil & Chequer (T&C), the Brazil-based practice, to jointly cover local clients. T&C will practice under the name “Tauil & Chequer in association with Mayer Brown,” while Mayer Brown’s Sao Paulo office will continue to practice under its existing name. “Through T&C, Mayer Brown will offer its global clients legal counsel on Brazilian domestic matters governed by Brazilian law and will increase its resources for advising clients with respect to investments in Africa, notably Angola, where many of T&C’s clients have been active,” says Mayer Brown. T&C’s clients will meanwhile gain access to Mayer Brown’s global platform, including an existing Sao Paulo office that advises clients on matters governed by New York and English law, as well as US securities law. Founded in 2001, T&C has approximately 60 lawyers in Rio and Sao Paulo and has an energy and infrastructure sector focus. “Continued growth in the energy and infrastructure sectors is a top strategic priority for Mayer Brown, and T&C’s strength in this market will contribute greatly to our realization of that goal,” says Stephen Hood, partner in charge of Mayer Brown’s Sao Paulo office.