2023 Q2Corporate Local Currency Deal of the Year

Deals of the YEar awardsCorporate Local Currency Deal of the Year: Equatorial Energia Renewables Acquisition FinancingIntro DividerThe acquisition of the largest independent wind power company by utility and power group Equatorial Energia was one of the flagship deals of Brazil’s energy market in recent years. Equatorial closed the acquisition of Echoenergia in March 2022 after structuring a R$7 billion financial commitment from banks in a package that included what Citi calls the largest green debenture ever issued in the country. The R$2 billion debenture was composed by two tranches: the first had a 5-year maturity and raised R$1.7 billion; and the second, 7-year and R$300 million. It was issued in December 2021 to meet general corporate purposes but also in anticipation of the Echoenergia acquisition. In addition to that, Equatorial obtained commitments for a R$3 billion, 18-month bridge loan and a R$2 billion, 3-year term loan to fund the deal. Citi was the lead arranger of the package. In between signing and closing the acquisition, Equatorial subsequently closed a R$2.8 billion equity follow-on transaction, advised by XP, in January 2022. The successful offer, which was 7 times oversubscribed according to CFO Leonardo Lucas, enabled Equatorial to use only R$4 billion out of the committed loans, with an average four-year maturity. “The acquisition represents our entry in a platform to expand renewable energy capacity, which will be one of the pillars of the energy matrix in the next decade,” Lucas says. The deal, which wins the award for Corporate Local Currency Deal of the Year, also helps Equatorial to diversify its generation portfolio and take a strategic position to profit from the liberalization of Brazil’s electricity market. “The acquisition of Echoenergia shows our interest in taking advantage of the growth opportunities created in the sector in recent decades, also taking into account the challenges and possibilities brought about by energy transition,” Lucas says. “I do not think our investments will stop there.” LFDividing RuleSupporting Organizations:Joint Bookrunners (Debenture): Citi; UBS BB; XP InvestimentosBookrunners' Legal Advisor (Debenture): Lefosse Joint Bookrunners (Equity Follow-On): Citi; Credit Suisse; Goldman Sachs; UBS; XP InvestimentosBookrunners' Legal Advisors (Equity Follow-On): Cleary Gottlieb; LefosseIssuer's Legal Advisor (Debenture & Equity Follow-On): Stocche Forbes
All supporting financial institutions and law firms were transmitted to LatinFinance by the award category winners. For updates please email awards@latinfinance.com
CoverMastheadLetterTable of ContentsDatabankMarket Talk: BondsMarket Talk: EquityMarket Talk: M&AMarket Talk: LoansCover Story: LatAm Capital MarketsScotiabankCover Story: Local Currency BondsBrazil: Economic PolicyBrazil: Interview: Gustavo LoyolaBrazil: Local Bond MarketsBrazil: Capital Market RegulationNearshoring in MexicoPeru's EconomyWinners: 2022 Deals of the Year AwardsSovereign Issuer of the YearCorporate Issuer of the YearSustainable Borrower of the YearSovereign Bond of the YearQuasi-Sovereign Bond of the YearCorporate High-Grade Bond of the YearCorporate High-Yield Bond of the YearSubnational Deal of the YearSovereign Liability Management of the YearQuasi-Sovereign Liability Management of the YearCorporate Liability Management of the YearIPO of the YearEquity Follow-On of the YearPrivate Equity Deal of the YearSovereign ESG Deal of the YearCorporate ESG Deal of the YearCross Border M&A Deal of the YearDomestic M&A Deal of the YearSyndicated Loan of the YearFinancing Innovation of the YearSovereign Restructuring of the YearCorporate Restructuring of the YearFI Deal of the YearSovereign Local Currency Deal of the YearCorporate Local Currency Deal of the YearStructured Financing of the YearLaw Firm of the Year - Latin AmericaSustainable Finance Law Firm of the YearLaw Firm of the Year – MexicoLaw Firm of the Year – BrazilLaw Firm of the Year – AndesBond House of the YearM&A House of the YearEquity House of the YearLoan House of the YearInvestment Bank of the Year Latin AmericaParting Shot: Maisa Rojas