US private placement market opens to Latam projects

Author: Danielle Myles | Published: 8 Nov 2012

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.