Year: 2022

Winner: Equatorial Energia Renewables Acquisition Financing

The acquisition of the largest independent wind power company by utility and power group
Equatorial Energia was one of the flagship deals of Brazil’s energy market in recent years.
Equatorial closed the acquisition of Echoenergia in March 2022 after structuring a R$7 billion
financial commitment from banks in a package that included what Citi calls the largest green
debenture ever issued in the country.
The R$2 billion debenture was composed by two tranches: the first had a 5-year maturity and
raised R$1.7 billion; and the second, 7-year and R$300 million. It was issued in December
2021 to meet general corporate purposes but also in anticipation of the Echoenergia
acquisition.
In addition to that, Equatorial obtained commitments for a R$3 billion, 18-month bridge loan
and a R$2 billion, 3-year term loan to fund the deal. Citi was the lead arranger of the package.
In between signing and closing the acquisition, Equatorial subsequently closed a R$2.8 billion
equity follow-on transaction, advised by XP, in January 2022. The successful offer, which was
7 times oversubscribed according to CFO Leonardo Lucas, enabled Equatorial to use only R$4
billion out of the committed loans, with an average four-year maturity.
“The acquisition represents our entry in a platform to expand renewable energy capacity,
which will be one of the pillars of the energy matrix in the next decade,” Lucas says.
The deal, which wins the award for Corporate Local Currency Deal of the Year, also helps
Equatorial to diversify its generation portfolio and take a strategic position to profit from the
liberalization of Brazil’s electricity market.
“The acquisition of Echoenergia shows our interest in taking advantage of the growth
opportunities created in the sector in recent decades, also taking into account the challenges
and possibilities brought about by energy transition,” Lucas says. “I do not think our
investments will stop there.” LF


SUPPORTING ORGANIZATIONS:
Joint Bookrunners (Debenture): Citi; UBS BB; XP Investimentos
Bookrunners’ Legal Advisor (Debenture): Lefosse

Joint Bookrunners (Equity Follow-On): Citi; Credit Suisse; Goldman Sachs; UBS; XP
Investimentos
Bookrunners’ Legal Advisors (Equity Follow-On): Cleary Gottlieb; Lefosse
Issuer’s Legal Advisor (Debenture & Equity Follow-On): Stocche Forbes


All supporting financial institutions and law firms were transmitted to LatinFinance by the
award category winners. For updates please email awards@latinfinance.com