Allen & Overy advises Bandeirante Energia S.A. on US$100 million loan facility

Allen & Overy advised Brazilian power distributor, Bandeirante Energia S.A., on a US$100 million, 8-year loan from the Inter-American Development Bank (IDB).

This loan will finance capital improvements and the extensive modernization program currently being undertaken by Bandeirante Energia S.A. The program includes improving and expanding services, upgrading the network and the construction of three substations in the state of São Paulo. When completed by the end of 2004, the company will be one of the most modern electricity distribution companies in the world.

Co-head of Allen & Overy's Latin America practice, Marun Jazbik, led the team with close involvement from Jacques Cook, Of Counsel in Allen & Overy's Project Finance Group, and Bruno Soares was the lead associate in this transaction.

Bandeirante CFO Thomas Brull comments: "This transaction will allow Bandeirante Energia S.A. to face an increase in consumption as a result of the expected economic recovery in Brazil across 2004. Consumption in Bandeirante's concession area has already risen 5% so far this year."

Marun Jazbik comments: "This is an important transaction for our client Bandeirante Energia S.A. and it is central to the service they offer to some 4 million people in 28 towns across the state of São Paulo. Our team was able to provide expert advice in a tight timeframe given our experience negotiating with the IDB and our expertise in the energy sector and Brazilian markets. We look forward to assisting Bandeirante Energia S.A. on future ventures."

He adds: "Allen & Overy's Latin America practice continues to be very active in a number of banking and capital market transactions in Brazil and across the region. Our involvement with Bandeirante Energia S.A. significantly adds to our objective of being a key provider of US and international legal advice for energy clients in Brazil and the region as a whole."

Partner Eduardo Soares from Brazilian law firm Mattos Filho led a team advising Bandeirante Energia S.A. on Brazilian legal matters.