Vale do Tijuco Açúcar e Álcool S.A. - Syndicated Loan

Demarest acted as deal counsel under a syndicated loan granted to Vale do Tijuco Açúcar e Álcool S.A. ("Vale do Tijuco") by a local bank syndicate formed by Banco Rabobank International Brasil S.A. and Itaú Unibanco S.A. in the total amount of R$95,000,000.00. The transaction was formalized through the issuance of Export Credit Certificates ("CCE's") and collateralized by fiduciary assignment of credit rights, mortgage, pledge over sugar cane, corporate guaranty and charge over escrow account kept abroad.

The transaction was formalized under the structure of Export Credit Certificates (Cédulas de Crédito à Exportação), subject to certain tax benefits and collateralized by fiduciary assignment of credit rights, mortgage, pledge over sugar cane, corporate guaranty and charge over escrow account kept abroad.

The deal was of great interest to Vale do Tijuco since the funds will be used by the company to finance its export transactions. 

Lead partner from Demarest: Antonio Giglio Neto - Banking and Restructuring

All the Demarest's lawyers involved: Marcelo Simon Ikeziri - Banking and Restructuring 

Relevant jurisdictions: Brazil and Bahamas

Governing law

Brazilian Collateral Documents and the CCEs governed by the laws of the Federative Republic of Brazil.

Bank Account Control Agreement and Fixed Charge Pledge governed by the laws of Bahamas.

Jurisdiction for dispute resolution:

Exclusive jurisdiction of any court of São Paulo, State of São Paulo, Brazil, São Paulo - Brazil to any dispute resolution arising from the Brazilian Collateral Documents or CCEs.

Exclusive jurisdiction of any court of Bahamas to any dispute resolution arising from the Bank Account Control Agreement or the Fixed Charge Pledge.