News
Klabin gets US$800 million IDB loan in Brazil
Clifford Chance LLP in New York and Mattos Filho, Veiga Filho, Marrey Jr e Quiroga Advogados in São Paulo have helped paper manufacturer Klabin obtain a US$800 million A/B credit facility from the IDB and the IFC.
The lenders relied on Hunton Andrews Kurth LLP in Houston and Dias Carneiro Advogados in São Paulo. The deal closed on 31 October.
The financing was made under IDB’s A/B loan programme through which the IDB provides the A portion, while it partners with other banks to give the B portion. The structure offers benefits to both lenders and borrowers by reducing the loan’s risks and giving tax discounts.
The IDB lent US$180 million to Klabin in the first tranche. The remaining US$620 million was provided by a group of lenders, including the IFC.
Klabin will use the financing to install two packaging paper machines at its pulp plant in the southern state of Paraná. The project will increase Klabin’s annual paper production by 920,000 tonnes. The company will also use the money to expand the plant’s power generation capacity by 140 megawatts and install waste and water treatment and gasification plants.
The project, which is estimated to cost 9.1 billion reais (US$2.1 billion), is the second construction phase of Klabin’s production facilities in Paraná. The first phase, which saw the construction of the pulp mill, was supported by the IDB in 2015.
According to an IDB statement Klabin’s project will help create jobs, increase renewable power generation and promote trade. Brazil’s paper industry employs five million people across the country and its revenues represent 6% of Brazil’s industrial GDP and 4% of its exports.
Counsel to Klabin
Clifford Chance LLP
Partner Chris Willott and associate Tom Hosted in New York
Mattos Filho, Veiga Filho, Marrey Jr e Quiroga Advogados
Partner Bruno Mastriani Simões Tuca and associates Flavia Magliozzi and Livia Helena Schiavone Crestana in São Paulo
Counsel to IDB and IFC
In-house counsel to IDB – Patricia Alves de Toledo
In-house counsel to IFC – Jorge Jaramillo
Hunton Andrews Kurth LLP
Partners Doris Rodriguez and Vera Rechsteiner, and associate Siddharth Sethy in Houston
Dias Carneiro Advogados
Partners Thiago Vallandro Flores, Gustavo Junqueira, counsel Luana Komatsu Falkenburger, and associates Fernanda Savorelli Melhem, Rodrigo Murussi and João Guilherme Rodrigues de Jesus in São Paulo
