Projects team advises International Finance Corporation on sustainable financing loan

Global Press release - Business March 2024

Global law firm Norton Rose Fulbright advised International Finance Corporation (IFC) in connection with its R$500m loan to Randoncorp, a Brazilian company involved in the mobility sector. This marks the first sustainable financing of Randoncorp and is meant to further the company’s commitment to environmental, social and governance initiatives.

With the funding from IFC, Randoncorp plans to construct a biomass-fired boiler that will be installed at the Frasle Mobility plant in Caxias do Sul to reduce consumption levels of fossil fuels like natural gas, which is currently used. Instead, the company will use certified wood chips from reforestation in the southern region of the country. The project has the potential to reduce greenhouse gas emissions by 60 percent.

The loan aligns with IFC’s interest in developing and deploying climate-related financings. To that end, the spread on the interest rate for the loan will decrease if the borrower can achieve substantial reductions in its greenhouse gas emissions.

The team was lead by counsel Micaela Garcia-Ribeyro with assistance from partner Jeremy Hushon (Washington, DC).