Jalles Machado’s $55 Million Loan

Hogan Lovells and TozziniFreire advised on the transaction

IFC, a member of the World Bank Group, provided $55 million in long-term financing to Jalles Machado, a sugarcane processor and a biomass producer. This investment will help strengthen the country’s sugar and ethanol industry, and support its efforts to increase the share of renewable power in the energy matrix. The sugar and ethanol industry plays an important role in Brazil’s economy, accounting for about 10% of its exports and over 1 million jobs.

IFC’s investment in Jalles Machado includes an eight-year $35 million loan from IFC’s own account, a seven-year $15 million loan mobilized from Rabobank, and a five-year $5 million loan mobilized from ABN Amro. The proceeds of the loan will help finance Jalles Machado’s investment program, which includes expanding the company’s sugarcane plantations and irrigation systems, and finalizing the construction of a sugar processing plant at one of the company’s mills in Goianesia, State of Goiás.

Founded in 1981, Jalles Machado is a family-owned company with operations in the state of Goiás. Jalles Machado currently operates two mills with combined annual crushing capacity of 5 million tons of sugarcane, as well as cogeneration. Jalles Machado is vertically integrated, participating in the planting and harvesting of sugarcane, its processing into sugar, ethanol and energy, and their storage and commercialization.

Hogan Lovells advised International Finance Corporation with Thomas P. Hechl and Antonio de la Esperanza.

TozziniFreire advised International Finance Corporation Kenneth Antunes Ferreira (Picture), Alexei Bonamin, Felipe Tulio de Paiva and Vinicius Pires da Silva.

Involved fees earner: Kenneth Antunes Ferreira – Tozzini Freire ; Alexei Bonamin – Tozzini Freire ; Felipe Tulio de Paiva – Tozzini Freire ; Thomas Hechl – Hogan Lovells;

Law Firms: Tozzini Freire ; Hogan Lovells;

Clients: International Finance Corporation;


Author: Ambrogio Visconti