Azevedo Sette Advogados was the legal advisor to CGN group in Brazil, in the process of obtaining lenders’ consent for change of control in the acquisition by CGN Energy International Holdings Co., Limited of 100% of the equity held by ENEL GREEN POWER BRASIL PARTICIPAÇÕES LTDA (EGP) in 9 wind and solar power plants with installed capacity of 540MW (90MW wind and 450MW solar). Banco Santander S/A was the financial advisor of the deal.
The lender´s consent process included the replacement of guarantees issued by EGP parent company by a counter guarantee issued by CGN Energy International Holdings Co Limited, as well as execution of surety agreement (Contrato de Prestação de Fiança - CPG) with Banco Santander S/A which provided the letters of credit in total amount of R$443.998.799,52 in guarantee of the financing facility with Banco do Nordeste do Brasil S/A (BNB) and release of the Equity Support Agreement (ESA). It also included the execution of a surety agreement (CPG) with BNP Paribas in support of letters of credit issued in favor of ONS and COELBA for O&M agreements executed by the project companies.
Amount involved is of R$2,9 billion.