Pinheiro Neto with Cielo in R$530 million fund with BNDESPar for credit to SMEs

Pinheiro Neto acted as a consultant to Cielo, the underwriters and BNDES Participações S.A. in setting up an investment fund for small and medium-sized companies

The deal involved complex discussions with BNDES on how Cielo, together with the financial institution BMP Money Plus, could offer loans to its commercial base.

Cielo and BNDES established a Credit Rights Investment Fund (FIDC), which received R$450 million from BNDES and R$79.4 million from Cielo.

With the help of BNDES’s contribution, Cielo will offer R$ 529.4 million, in partnership with bank BMP Money Plus, to help entrepreneurs who are struggling to maintain working capital especially in view of the Covid pandemic, through the Receba Mais credit line.

Credit operations will be limited to R$200,000 per client, with a total effective cost (CET) of 3.5% per month and a maturity date of up to 30 months. The resources resulting from the structure will be offered to around 56,000 merchants in need of working capital. In addition to the loans, Cielo will also provide technical training to the selected merchants in order to help them strengthen their businesses.

Pinheiro Neto Advogados acted as legal counsel to Cielo and to the underwriters Banco Bradesco BBI S.A. and UBS Brasil Corretora de Câmbio, Títulos e Valores Mobiliários S.A..

Pinheiro Neto’s team included partners Ricardo Simões Russo (pictured left), Caio Ferreira Silva (pictured right), and associates Felipe Tucunduva van Heemstede, Lucas Marinho, Brenno Allaim de Sousa, and legal assistant Carolina Fernández Vidal.