Experience

Copper Mine Financing

Companhia Vale do Rio Doce

Chadbourne represented Brazil's Companhia Vale do Rio Doce (CVRD) in a $400 million syndicated financing for the development of the Sossego copper mine in the state of Pará, Brazil. The transaction was covered by a political and commercial risk insurance policy issued by Japan's Nippon Export and Investment Insurance (NEXI). The transaction consisted of an initial tranche of $300 million completed in March 2004 and a second tranche of $100 that closed on April 26, 2005. 

The deal was notable because it combined the efficiencies and lower transaction costs associated with traditional syndicated financings with the risk-mitigation features of NEXI's commercial and political risk insurance coverage for overseas untied loans. The transaction was arranged by The Bank of Tokyo-Mitsubishi Ltd. and included a syndicate of nine international banks.