In a major financing showcasing the strong Korean and Latin American nexus of its practice, Milbank, Tweed, Hadley & McCloy LLP represented Korea’s leading export/trade authorities in providing approximately US$2.1 billion in financing for construction of a new steel mill in Brazil.
Milbank advised the Export-Import Bank of Korea (KEXIM), the Korea Trade Insurance Corporation (K-sure) and certain commercial lenders in providing the long-term financing to Companhia Siderúrgica do Pecém, operator of the new plant in Brazil’s northeastern state of Ceara. CSP is a joint venture between leading South Korean steel producers POSCO and Dongkuk Steel, and leading Brazilian mining and logistics company Vale S.A.
In addition to KEXIM and K-sure, financing for the project is also being provided by the Brazilian Development Bank (BNDES). Construction on the mill began in 2012 – it is expected to be operational later in 2016.
“We’re very pleased to be working with two of our longtime Korean clients KEXIM and K-sure in arranging substantial long-term financing for a new steel manufacturing site in Brazil,” said Milbank partner Daniel Bartfeld, who leads the firm’s Project Finance group. “The scale of the project and such major support from both domestic and international lenders and credit agencies demonstrates continued faith in Brazil’s importance as a commodity producer.” Milbank partner Young Joon Kim, who launched the firm’s Seoul office earlier this year, adds “This is the largest Korean financing ever in Brazil, and shows the commitment to Latin America by KEXIM and K-sure.”
In addition to Mr. Bartfeld and Mr. Kim, Milbank’s financing team included São Paulo based Global Securities partner Tobias Stirnberg and New York-based senior associate Danielle Hunt and associates Sean O’Neill and Caylee Hong, as well as Seoul-based senior associate Bong-Sang Cho.
About Milbank
Milbank, Tweed, Hadley & McCloy LLP is a leading international law firm that has been providing innovative legal solutions to clients throughout the world for nearly 150 years. Milbank is headquartered in New York and has offices in Beijing, Frankfurt, Hong Kong, London, Los Angeles, Munich, São Paulo, Seoul, Singapore, Tokyo and Washington, DC.
The firm’s lawyers provide a full range of legal services to the world’s leading commercial, financial and industrial enterprises, as well as to institutions, individuals and governments. Milbank’s lawyers meet the needs of its clients by offering a highly integrated and collaborative range of services across key practice groups throughout its global network. Milbank’s integrated practice is underpinned by its attorneys’ acknowledged technical excellence, sectorial experience and a strong tradition of innovation and client service.
