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August 27, 2019

Milbank Advises Sponsors on LNG-to-Power Project in Brazil

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Milbank LLP advised the project company, Gas Natural Açu (GNA), in connection with the development and financing of a major LNG-to-Power project at Açu Port in São João da Barra, Brazil. The financing included a credit facility from Brazilian development bank Banco Nacional de Desenvolvimento Econômico e Social (BNDES), guaranteed by KfW-IPEX Bank and supported by Euler Hermes, and a credit facility from the International Finance Corporation.

The financing will be used for phase 1 of the project, consisting of the development and construction of a 1,338MW thermoelectric plant, an LNG import and regasification terminal, and a substation and transmission line connecting the plant to the national grid. This project is part of the largest natural gas thermoelectric complex in Latin America.

The cross-border Milbank team was led by Global Project, Energy and Infrastructure Finance partners Carolina Walther-Meade and Dan Bartfeld in New York and Matthew Hagopian in London, special counsel Chris Taufatofua, and associates Fernando Capellão, Rhys Howard, Rocío Portela-Berrios and Kilian de Cintré.

“We are pleased to have advised the sponsors on this landmark financing. We look forward to representing clients in continued investments in the Brazilian energy and infrastructure sectors and are confident that the international financial markets will continue to have an appetite for well-structured transactions across the region,” said Ms. Walther-Meade.

Dan Bartfeld, head of Milbank’s Global Project, Energy and Infrastructure Finance Group, added: “We are extremely active in oil, gas and LNG-related projects throughout Latin America. This deal is indicative of the continued success and increase of these types of projects in Brazil and we are thrilled to be part of another successful LNG project in the region.”

Milbank recently advised on CELSE’s Porto de Sergipe LNG-to-Power Project in Brazil which received numerous accolades including “Financing Innovation of the Year,” and the Firm is also working on several other high-profile oil and gas/LNG-related matters (M&A and financings) in Brazil and throughout the region.