Ethanol Startup Fuels Loan Package

Brazilian ethanol startup CNAA is putting together a $670m financing including an IDB A/B loan and a pre-export facility, an official close to the company tells LatinFinance. The privately held greenfield company hopes to achieve a tenor of 15 years on a $250m A loan with pricing potentially in the Libor plus 300bp-350bp region, according to the executive. A $300m syndicated B-loan could reach 13 years and carry a margin of Libor plus 300bp, he adds. BNP Paribas has been tapped to lead the syndication, expected to get underway shortly. CNAA has also recently closed a $120m pre-export loan via Bradesco, ABN AMRO and Banco Espirito Santo. The 7-year club pays Libor plus 275bp. According to the executive close to the company, the A/B transaction is the first project loan for Brazil’s ethanol and sugar sector. He sees structured finance playing a bigger role in his industry as companies build out mill complexes. Odebrecht ethanol startup ETH also plans to use project finance for its initiatives, that company’s officials told LatinFinance late last year. CNAA has roughly $330m in equity, much of which is held by private equity funds belonging to Goldman Sachs, Carlyle Riverstone, Merrill Lynch, Discovery Capital, and Global Foods. SantelisaVale owns a 28% stake in CNAA.