Tauil & Chequer Advogados advises Concessionária Ecovias do Araguaia on R$ 4.2 billion financing

Tauil & Chequer Advogados in association with Mayer Brown advised Concessionária Ecovias do Araguaia, a subsidiary of the EcoRodovias Group, on a long-term financing totaling BRL 4.2 billion, the proceeds of which will be used for the operation, maintenance and recovery, among others, of the BR-153/414/080/TO/GO Highway System. The deal comprises three loans, a Credit Facility with a Brazilian development bank, the Banco Nacional de Desenvolvimento Econômico e Social – BNDES, in the total amount of BRL 3.1 billion, a Bank Credit Note issued in favor of Banco da Amazônia S.A. in the total amount of BRL 461 million and the first issuance of debentures by Ecovias do Araguaia in the amount of BRL 600 million and with maturity term of 29 years, this being the longest operation in the infrastructure debenture market (“Issuance”). BNDES was the lead coordinator of the Issuance.

In addition, the team also advised Ecovias do Araguaia and its direct and indirect shareholders in connection with a bank surety letter issued by Itaú Unibanco S.A to secure the obligations assumed under the Issuance. The team was led by partners Luis Montes and Carlos Motta and featured the participation of associates Camila Spinola, Thatiana Siqueira and Wilson Jung, all from the Banking & Finance and Capital Markets and Securitization practices.