Brazil's TozziniFreire Advogados has helped a joint venture between US crop farmer Summit Agricultural Group and Brazilian counterpart Fiagril obtain a US$50 million loan that finances construction of the first corn ethanol plant in Brazil.
The identity of the US lender who provided the loan is confidential. The financier hired Pinheiro Neto Advogados for the deal, which closed on 11 August.
In total, the plant will require 400 million reais (US$123 million) in debt and equity investment.
The facility is being built near Lucas do Rio Verde in Mato Grosso, a state in west central Brazil that is the country's largest producer of corn and soybeans. It is set to be completed by mid-2017.
Brazil produces 25 per cent of the world's ethanol, while ethanol represents almost 18 per cent of the Brazilian transport sector's energy consumption. The plant is intended to offset Brazil's increasing demand for the fuel, which cannot be met by existing production from sugarcane.
TozziniFreire was counsel to Fiagril when the Brazilian company signed its joint venture with Summit last November. Levy & Salomão Advogados advised Summit on the agreement.
Counsel to FS Agrisolutions
Partners Vladimir Miranda Abreu and Alexei Bonamin, and associates Lais Claudio Monte, Jacques Abi Ghosn, Matheus Ferreira and André Togna
Counsel to the lender
Pinheiro Neto Advogados - Partner José Luiz Homem de Mello and associates Marilia de Cara and Johnatan Maranhão