Machado Meyer and Dias Carneiro in US$150 million deal between Atlas Renewable Energy and IDB Invest and DNB Bank

Machado Meyer advised Atlas Renewable Energy and Dias Carneiro advised Inter-American Development Corporation and Norway-based DNB Bank ASA on $150 million loan for solar project

Atlas Renewable Energy has secured a US$150 million loan from IDB Invest and DNB Bank ASA (Norway) to finance the construction of the Lar do Sol – Casablanca project, a 359 MWp solar power plant that will supply 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 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).

Machado Meyer Advogados acted as Brazilian counsel to Atlas Renewable Energy with partners Jose Prado (pictured left) and Paulo De Tarso Do Carmo Machado and associate Natalia Fava De Almeida.

White & Case LLP represented the same parties in Miami.

Dias Carneiro Advogados acted as Brazilian counsel to the Inter-American Development Corporation (IDB Invest) and Norway-based DNB Bank ASA (DNB) with partners Thiago Flores (pictured right), Gustavo Junqueira and Paulo Leme, and associates Pedro Araujo, Arthur Fontoura and Rodrigo Murussi.

Allen & Overy LLP represented the same parties in New York.