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Allen & Overy advised &Green on ESG-linked loan to advance deforestation-free supply chains

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Soares Bruno
Bruno Soares

Partner

São Paulo

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Mausen Frank
Frank Mausen

Partner

Luxembourg

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Teixeira Andre
André Teixeira

Senior Counsel

São Paulo

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Kappel Eduardo
Eduardo Kappel

Associate

São Paulo

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17 June 2022

Allen & Overy (A&O) advised &Green on a ESG-linked loan to FS Luxembourg S.À r.l. (FS), guaranteed by FS Agrisolutions Indústria de Biocombustíveis Ltda., one of the most important Brazilian producers of corn-base bioenergy and animal fed, aiming to transform current land use practices of corn and soy producers in the Brazilian State of Mato Grosso into sustainable production in both the Amazon and Cerrado biomes.

The eight-year credit facility will help provide a sustainable source of biofuels, animal feed, corn oil and electricity created by corn crop. As part of the deal, FS agreed to conserve 224,000 hectares of forest, covert 40,000 hectares of degraded lands into renewable biomass plantation and restore 5,000 hectares of degraded forests by the end of the loan tenure.

“The A&O team is proud to advise this cross-border financing agreement, which will support sustainable agricultural practices and help preserve vital ecosystems in Brazil’s rainforests,” said Bruno Soares, partner and member of the projects, energy, natural resources and infrastructure (PENRI) practice group. “Sustainable supply chains continue to play a vital role in ensuring global food security, and we look forward to advising our clients in similar efforts in the future.”

The A&O deal team was led by São Paulo partner Bruno Soares, with support from Luxembourg partner Frank Mausen. Additional support was provided by senior counsel André de Paiva Teixeira and associate Eduardo Dettmann Kappel in São Paulo.

For further information, please contact Zach Harris in New York at pro-a&o@prosek.com.