Milbank Represents Bank of America, N.A. in Private Loan to the State of Santa Catarina, Brazil

International law firm Milbank, Tweed, Hadley & McCloy LLP, led by Global Securities partner Marcelo Mottesi, acted as special US counsel to Bank of America, N.A. as lender under a credit and guaranty agreement in the amount of US$726 million to the Brazilian State of Santa Catarina. The loan matures in 2022, and is guaranteed by the Federative Republic of Brazil.

This is only the second private credit and guaranty agreement ever entered into by a Brazilian state, following the US$479 million loan by Bank of America, N.A. to the state of Mato Grosso in September 2012. In that transaction, Milbank also acted as counsel to Bank of America, N.A.

The loan to Santa Catarina was used to pay existing debt the state owed to the Federal Government.

Mr. Mottesi said, “We’re very pleased to have worked with Bank of America to provide this historic private credit facility to Santa Catarina. That Milbank was also integral to the first such private loan to a state is evidence of the continuing strength of Milbank’s transactional practice in Brazil and throughout Latin America.”

Santa Catarina is located in southern Brazil along the Atlantic coast, and enjoys one of the highest standards of living in Latin America and in the Southern Hemisphere. A center of industrial and livestock production, it has seen robust economic growth since the 1980s. Its population of approximately 6.3 million leads the nation in quality of life measures such as literacy, education, income, and life expectancy.

Other Milbank attorneys involved in this transaction included Global Securities associates Matthew Squires, Rodrigo Carvalho and George Naya, Alternative Investments partner Jay Grushkin and associate Nicholas Robinson and Tax partner Andrew Walker.

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