Deutsche Bank in Loans to Brazilian Sugar and Ethanol Producer

July 30, 2010

Cleary Gottlieb represented Deutsche Bank as the lender of a term loan to Angélica Agroenergia, a Brazilian sugar and ethanol producer controlled by Adecoagro, a venture backed by George Soros, which invests in agriculture and renewable energy in South America. The deal closed on July 30.

The term loan was secured by a mortgage on certain Brazilian real estate owned by Angélica and a cash collateral account maintained in New York, and was also guaranteed by Adecoagro. Earlier this year, Deutsche Bank made a bridge loan to Angélica, which was secured by a pledge by Adecoagro of its equity in Angélica’s parent company. Cleary Gottlieb regularly represents Deutsche Bank in a variety of financings in Latin America, including advising Deutsche Bank on the bridge loan, which closed on March 31.

Angélica plans to use the loan proceeds to finance certain capital expenditures related to capacity expansion of its sugar mill and for other corporate purposes.