IFLR 1000
The Guide to the World's Leading Financial Law Firms

It seems timely that at the point where Brazil finally seems to be realising its economic potential and drawing the eyes of investors and prospectors from across the globe, that the country should also be gearing up to host the two biggest festivals of world sport: the 2014 soccer World Cup and the 2016 Olympic Games.

Brazil has hosted the World Cup before of course, but that was in 1950, the world and the event have changed dramatically since then. A look back to the South African finals of 2010 is a better comparison, an up and coming economy presenting itself to the world whilst desperately trying to cope with the infrastructural demands of a huge influx of fans from across the globe.

Few doubt that the country will put on a show, with many imagining a Rio Carnival type celebration on a grand scale, but beyond the pageantry there is plenty of less glamorous work still to be done.

Infrastructure, not just in the forms of the stadiums themselves, but also roads, rail, airports and leisure facilities, will all need to be put in place and the clock is ticking.

"The sense of urgency is there, especially for new transportation, airports and hotels. 22,000 new rooms are needed in Rio alone for 2016," says one partner. "It goes beyond city government to the federal level; for the first time in 30 or 40 years, totally aligned."

There is a concern that things are not moving as quickly as they should be, with bureaucracy and the recent elections both being blamed for the delays. "We're beginning to see some work related to upcoming sporting events," says one partner, "Things are moving slower than we'd like because they depend on the government, so we haven't seen a lot on the finance side."

"Projects for the Olympics and World Cup are somewhat behind because of the general elections; lot of complications. Bureaucracy is a problem," says another. However, there is still optimism that realism will start to drive things forward: "Investors' perceptions of the new government are quite positive because of the program they have in place for infrastructure projects," says another partner. "They're not trying to re-invent the wheel. There's a general consensus about what needs to be done."

Alongside the stadiums, other projects planned include an extension of the Rio Metro and a high-speed rail link between Rio and Sao Paolo.

Driving a number of these projects is the Brazilian Development Bank (BNDES) and firms with good connections with the institution will be looking at a good number of mandates in coming years.

Outside of sport-related infrastructure, another major project of interest is the Belo Monte Dam. When completed, it would be the third largest hydroelectric project in the world behind the Three-Gorges in China and the Itaipu Dam on Brazil's border with Paraguay. With the economy booming and the population increasing, demand for power will only keep going up and the country will soon need to decide whether its future is in big projects like Belo Monte or energy production on a more macro scale.

A clear highlight for the Machado project finance team last year saw partner Giovanni Biscardi advise mining company Vale on a capital injection of €965 million ($1.3 billion) into ThyssenKrupp Steel.

This not only increased Vale's stake in the firm to 26.87% but also provided part funding for a new steel plant construction by CSA. The new plant is the biggest infrastructure project ever undertaken in the State of Rio and the cash injection gives Vale a substantial say on the construction and running of the plant.

Pinheiro Neto remains in the top tier this year, having established itself as one of the strongest firms in the energy sector.

This was backed up by its work last year on two major hydroelectric projects, including the 11,000MW Belo Monte dam that will, upon completion, be the third largest in the world in terms of capacity. The firm negotiated on behalf of the lenders over the $11 billion of financing for the project.

In the same area, the firm also negotiated on behalf of lenders including Banco do Brasil, Bradesco, Itaú BBA, Banco do Nordeste and Caixa Econômica Federal for the Jirau Dam, a hydroelectric plant currently under construction on the Madeira River in Rondônia, Brazil. The project involved several environmental challenges and was valued at around R$10 billion ($6 billion).

The firm has also been busy in other areas of energy and advised the EDP Group over aspects of its acquisition and construction of two wind power plants.

Infrastructure has been a talking point this year, with all firms trying to break into the projects available. In this light and breaking away from its energy focus, last year the firm advised on two rail projects in the northeast of Brazil, Serra Norte and Serra Sul. The team advised mining companies Vale and Odebrecht on the deal, which will improve transport links between key mining centres and the coast.

Souza Cescon moves to tier one this year after a strong list of mandates and positive market feedback.

A clear example of the sort of the work the firm is now involved on saw it advise Vale, Votorantim, NeoEnergia and Andrade Gutierrez on the bidding process and subsequent securing of financing for the Belo Monte Dam. The 11,000MW hydroelectric project will be the third-largest in the world upon completion.

The firm has also carved out a niche in the offshore and oil and gas sectors and last year the team advised Petrobras and Santander in the structuring of the financing of 28 deepwater rigs for the exploration of oil in the Santos Basin, southeast of São Paulo, Brazil. The project will need over $20 billion in investments over a 10-year period.

In a similar deal the firm again advised Santander, this time alongside ING on the $850 million financing to OSX for the FPSO (Floating Production Storage and Offloading) OSX II shipyard project.

As in banking, Mattos Filho maintains its strong tier two position this year. The firm increased its focus on the area at the end of 2010 with the creation of a new infrastructure practice consisting of lawyers specialising in project finance, oil & gas and energy.

Peers have a healthy respect for the practice: "If conflicted, I would give the work to Mattos Filho," says one, while partner Marina Schneider, who advises on both banking and project finance work, is also held in high-regard: "We worked with her on several deals; very experienced, a rising star. Also, for project finance, she works with a lot of banks," says another competitor.

Like many of its peers the firm also picked up a role on the Belo Monte hydroelectric project. The team is advising Camargo Correa on the proposed R$25 billion ($15 million) financing for the 11,000MW dam.

Advising on the deal were partners Lauro Celidonio and leading lawyer Pablo Sorj, with the latter also acting as lead counsel to energy company MPX Pecém II Geração de Energia and its sponsor MPX Energia as it secured R$987 million of financing from the Brazilian Development Bank (BNDES) and BNB for a 360MW coal-fired power plant in the state of Ceará.

In an interesting project in the research and development area, Sorj again took the lead advising General Electric on the finance and development of a new $400 million development centre in Rio.

Other highlights include the firm's work on a $1.5 billion ethanol pipeline project, which will transport up to 40% of ethanol production from Brazil's southern region. The firm advised Odebrecht Transport, Uniduto Logística, Cosan and Copersucar in regard to corporate, construction and regulatory matters in the joint venture, incorporated with Petrobras and Camargo Correa. The deal closed in February 2011.

The firm recently represented the International Finance Corporation (IFC), in a $679 million financing to Brasil Terminal Portuário as part of the total $908 million financing for a new container terminal in the Port of Santos. As well as expanding capacity at the overcrowded port, the project will also aim to reduce pollution through greater efficiency. The project represents the IFC's biggest ever syndicated loan for a port investment.

In a similar deal, the team also advised investment fund Fundo de Investimento do Fundo de Garantia do Tempo de Serviço (FI-FGTS) on it's financing to Terminal Santa Catarina for the terminal expansion at São Francisco de Sul in the State of Santa Catarina in the south of the country.

The team also worked across from FI-FGTS acting for a special purpose vehicle (SPV) Iracema Transmissora de Energia (owned by Dragados Industrial), as borrower on the R$109 million ($67 million) financing for a 400km electricity transmission grid in northeast Brazil.

Name partner Thomas Felsberg co-leads the project finance team at the firm alongside Maria da Graça Pedretti. Both partners were involved on the firm's major work last year, most of which was focused around providing advise to the Inter-American Development Bank (IDB).

In one example Felberg acted for IDB on the $350 million financing for the acquistion of rolling stock and general operations of Metro Line 4 PPP (public-private partnership) in Sao Paolo.

Pedretti meanwhile acted for the bank in regard to the $250 million financing IDB extended to SABESP for the construction and operation of a water sources preservation program. The project is designed to preserve water soruces for the city of Sao Paolo.

Pedretti also advised IDB on the $327 million fiancing to Porto do Pecém Geração de Energia for the constructions and operation of a 720MW coal -fired power plant in the state of Ceará in North Brazil.

Levy's project work last year was focused around power and in particular hydroelectric.

In one deal, partner Luiz Roberto de Assis acted on the largest project financing in Brazil to date, the R$25 billion ($14 billion) Belo Monte project. Once complete it will be the third largest power plant in the world.

In a similar deal but on a smaller scale Eduardo Salomão Neto and Ana Cecília Manente advised Fundo de Investimento do Fundo de Garantia do Tempo de Serviço (FIFGTS) on the financing for another hydroelectric project, this time developed by Santa Maria Companhia de Papel e Celulose.

Outside of power, the team also acted for the Inter-American Development Bank (IDB) on the financing for Delba Drilling's new offshore oil rig.

Pinheiro boosted its finance team last year with the hire of André Sigelmann from Villemor Amaral. The new entrant hit the ground running working on two of the firm's major deals in the last 12 months.

In one Sigelmann, alongside Roberta Pimental, acted for Suzano Papel e Celulose on the financing for its new pulp plant in the state of Maranhão. The plant will be constructed by Metso Paper and is a major project in the region.

Sigelman also advised Renova Energia on the financing and construction of 20 new wind farms with a combined capacity of 450MW.

Trench Rossi, which maintains an association with Baker & McKenzie, has a small but dedicated project finance offering led by José Augusto Martins.

Last year the team was involved in acting for BNDES on the $42 million financing for the funding of a bus rapid transit system in Johannesburg.

The team also assisted in the drafting of an investment agrrement to develop a steel manufacturing plant in the state of Ceará.

Restructuring was also on the agenda for the firm who assisted oil company Petrobras on the unwinding of the company's Barracuda and Caratinga project finance agreements.

Veirano's projects team is part of the firm's wider corporate offering.

Last year the firm secured a role on the largest project financing in the country acting for the construction companies including Andrade Gutierrez and Camargo Correa on the R$13.8 billion ($7.7 billion) financing for the Belo Monte hydropower plant, which when complete will be the third largest power plant in the world. Ana Carolina Barretto led the deal.

Another substantial deal saw Ricardo Veirano advise Odebrecht on the R$921.5 bank financing and R$1.1 billion debenture financing for the investment and exploration project Corredor Dom Pedro I in Sao Paolo.

Finally, the team also provided advise to DnB NOR on the loan agreement with Viken Shuttle for the $325 million financing of five DP 2 Aframax shuttle tankers.