Movida’s $300 Million Sustainability-Linked Notes Reopening
September 15, 2021
Cleary Gottlieb represented Itaú BBA, Morgan Stanley, Citigroup, J.P. Morgan, BTG Pactual, Santander, UBS Investment Bank, and XP Inc, as initial purchasers, in the reopening of $300 million 5.25% notes due 2031, issued by Movida Europe S.A., a Luxembourg subsidiary of Movida Participações S.A. (Movida), and guaranteed by Movida and Brazilian subsidiaries Movida Locação de Veículos S.A. and Movida Locação de Veículos Premium Ltda.
The transaction priced on September 8, 2021 and closed on September 15, 2021.
The notes are linked to Movida’s ability to achieve, by December 31, 2025, a specified target reduction of greenhouse gas emissions, as confirmed by an independent external verifier, under Movida’s sustainability-linked securities framework adopted in January 2021. If this target is not met, the coupon rate on the bonds will automatically step up to 5.5% per annum. The notes will be listed on the Singapore Exchange Securities Trading Limited.
Movida intends to use the net proceeds from the sale of the notes for general corporate purposes, including capital expenditures, and to refinance certain existing indebtedness.
Movida, through its subsidiaries, operates in two segments: car rental services to individuals and companies, as well as fleet management and outsourcing (GFT).