TozziniFreire Advogados in São Paulo has helped a joint venture between US farming company Summit Agricultural Group and Brazilian holding company Tapajós Participações obtain financing for its corn ethanol production facility.
Pinheiro Neto Advogados in São Paulo confirmed that farm operator Midwest Oil Seeds acted as lender for the deal, which closed on 25 January.
The lender is also thought to have relied on Troutman Sanders LLP, and the borrower on Milbank, Tweed, Hadley & McCloy LLP, but these could not be confirmed prior to publication. The value of the loan remains confidential.
Summit is investing a total of US$100 million to expand the FS Bioenergia facility. This comes in the wake of a bill passed in December which aims to boost ethanol and biodiesel use in Brazil and reduce the country's levels of carbon emissions, in line with the Paris Agreement.
The law sets out the RenovaBio programme, which is to be implemented by 2020, the same year the Paris Agreement's current non-binding pledges will come into full effect. The law is expected to double demand for ethanol fuel in the country within 10 years, reducing the amount of petroleum-based products currently imported. Companies that fail to meet certain standards will have to buy emissions reduction certificates as part of the new energy compliance regulations.
Counsel to FS Bioenergia
Partners Vladimir Miranda Abreu and Alexei Bonamin, and associates Ricardo Campos Fiuza and Matheus Stankevicius Ferreira in São Paulo
Counsel to Midwest Oil Seeds
Pinheiro Neto Advogados
Partner José Luiz Homem de Mello and associates Marilia de Cara and Johnatan Maranhão in São Paulo