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Arnold & Porter Represents JICA and MUFG Bank Ltd. in 18.175 Billion Japanese Yen (R$ 703.4 Million) Financing Agreement to Support Social Development and Energy Distribution in Northeast Brazil

May 12, 2023

Arnold & Porter represented the Japan International Cooperation Agency (JICA) and MUFG in a significant financing agreement valued at 18.175 billion Japanese Yen (approximately R$ 703.4 million) with Companhia Energética de Pernambuco (CELPE) as the borrower and Neoenergia S.A. (the parent company of CELPE and a subsidiary of Iberdrola) as the guarantor.

“The deal reflected a close alignment of expectations, and collaboration, among MUFG, JICA, CELPE and Neoenergia, so we were able to close the financing quickly and efficiently, and get the funds to the rural development projects where they're needed,” said Arnold & Porter partner Chris Willott.

This collaboration marks a major milestone in enhancing Brazil's energy infrastructure. The primary objective is to expand energy distribution in the concession area of Neoenergia Pernambuco by bolstering power transmission and distribution networks, extending coverage to remote regions, and improving energy supply efficiency and quality. The project aligns with several of the United Nations' Sustainable Development Goals, emphasizing a commitment to environmental and social sustainability while promoting economic growth and overall development in the region.

Under the financing arrangement, JICA's up to 12 billion Yen loan will be provided through its Private Sector Investment Financing Program (PSIF), complemented by MUFG's loan of up to 6.175 billion Yen.

Japan International Cooperation Agency and MUFG were represented by Arnold & Porter partner Chris Willott and associate Howard Duan, alongside Demarest Advogados attorney Fausto Teixeira.