Publicado em 21/05/2021 - Track Record

Dias Carneiro advises IDB Invest and DNB on the second USD project financing to Atlas solar project in Brazil

Dias Carneiro Advogados acted as Brazilian counsel to the Inter-American Development Corporation (IDB Invest) and Norway-based DNB Bank ASA (DNB) on their combined US$ 150 million loan to Atlas Renewable Energy, destined to finance the construction of its Lar do Sol – Casablanca project, a 330MW solar project to be developed in Brazil that will provide clean energy to Anglo American’s operations in Minas Gerais.

This was the second time that a Brazilian renewable energy project has received long-term financing in US dollars. The first one being the recently announced financing for Atlas’ Jacaranda solar plant, which was also financed by IDB Invest and DNB Bank, advised by the same Brazilian and US law firms. This is an important milestone in the sector that could unlock USD and other foreign currencies financing in Brazil, paving the way to boost and develop the renewable energy market.

Atlas Renewable Energy sealed a PPA with a tenor of 15 years with British mining company Anglo American Plc. The PPA is part of Anglo American’s strategy to use 100% renewable energy in its operations in Brazil from 2022 onwards. The mining company’s goal is to create a sustainable mine, with a 30% reduction in CO2 emissions by 2030.

The plant will generate 805 GWh per year and the PPA is, to date, the largest contract with a solar project for the supply of clean energy to a private offtaker in Brazil. Lar do Sol – Casablanca’s generation will be the equivalent of supplying energy to 390,000 houses per year according to the average consumption of a Brazilian family and will avoid approximately 50,000 tons of CO2 emissions per year, which could be compared to removing 19,867 vehicles from the streets of São Paulo in the same period.

The transaction with IDB Invest, with the participation of funds C2FII and the CTF, includes a set of performance incentives on gender, diversity, and inclusion to accelerate the implementation of an action plan to increase diversity. Learn more

The operation potentially contributes to four of the United Nations Sustainable Development Goals: Affordable and Clean Energy (SDG 7), Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9) and Climate Action (SDG 13).