Swiss banking group REYL & Cie acted as lead arranger and co-bookrunner on a $60m Luxembourg bond issuance.
This was in relation to Cidade Matarazzo, a large-scale real estate, hospitality and luxury retail project in Sao Paulo, Brazil.
The proceeds of the issuance are intended to refinance existing debt and to fund equity contributions. A Luxembourg entity issued the bonds and were fully subscribed by one of Asia’s largest independent alternate investment groups as well.
Furthermore, REYL’s corporate advisory and structuring team provided bespoke advice for the cross-border transaction. It involved multiple stakeholders in locations such as the US, Brazil, Luxembourg, Ireland, and Hong Kong.
The multi-layer structure also needed various credit enhancement mechanisms, including put and call agreements intended to provide the bondholder with a security package.
François Reyl, chief executive at REYL, said: “We are proud to be part of the ongoing development of this unique project, which is transformative for Sao Paulo and Brazil. This new transaction marks a further milestone in the development of REYL’s Corporate Advisory & Structuring business line and reinforces its growing international footprint.”
Xavier Ledru, deputy head of corporate advisory & structuring at REYL, added: “This transaction further demonstrates our ability to provide tailored advice in the context of complex, cross-border transactions. The bond refinanced an already existing instrument, which added a further layer of complexity to the transaction as multiple interests and negotiations had to be managed at the same time. We look forward to working further on this exceptional project as it continues to progress.”
Cidade Matarazzo is the largest heritage renovation project in Brazil. It includes a luxury Rosewood hotel, scheduled to open in October 2020, as well as office and retail space. The project will offer tech-led retail shopping environments and the “city in the city” is expected to see up to 30 million visitors a year.