Cleary Gottlieb represented Citigroup, J.P. Morgan, Morgan Stanley, BTG Pactual, Itaú BBA, Santander, UBS Investment Bank, and XP Inc., as initial purchasers, in the offering of $500 million 5.25% notes due 2031, issued by Movida Europe S.A., a Luxembourg subsidiary of Movida Participações S.A. (Movida).
The notes are guaranteed by Movida and Brazilian subsidiaries Movida Locação de Veículos S.A. and Movida Locação de Veículos Premium Ltda. The transaction was the first offering of bonds by the Movida group in the international market. The transaction priced on January 28, 2021, and closed on February 8, 2021.
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.
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 new 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 are listed on the Singapore Exchange Securities Trading Limited.
Movida, through its subsidiaries, operates in two segments: car rental services to individuals and companies, as well as fleet management and outsourcing (GFT).