A
first-of-its-kind private placement has linked US institutional
investors with Brazil’s project market – and revealed
them to be a perfect a
match.
The
$500 million deal creates a new capital source for
Brazil’s energy sector, as well as new long-term
investment opportunities for insurance and pension fund
investors.
Last
week’s offering by SBM
Offshore is one
of Brazil’s first private placements under US securities
law. It is the first from its energy sector.
“For
Brazil’s energy market there are now three sources of
capital: the bank and EC (export credit agency) market, section
144A bond market, and now private placements,” said
Milbank Tweed Hadley & McCloy partner Dan Bartfeld, who
represented the issuer.