Environment and Natural Resources in Uruguay

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Environment and Natural Resources in Uruguay

Environment and Natural Resources in Uruguay

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Regional Capabilities

We represent local and international clients in relation to businesses and investments in non-liquid assets, such as natural resources. This has always been one of our most traditional sources of work, which has endured the test of time. We have significant experience in agribusiness (dairy industry, forestry, agriculture, cattle industry and meat processing) where we have managed to maintain a significant presence in the market over time.

Key clients in the agribusiness sector are Olam Group, PGG Wrightson, Nidera, SanCor, Marfrig Group, and Forestal Oriental, inter alia.

More recently, through our experience in the Banking & Finance industry, our Firm continues to be at the driving seat in a new wave of project financings for the energy infrastructure sector, especially in renewables. Through these financings, we have grown steadily in the past years in the buoyant energy sector in Uruguay. In this regard, we have participated in a great number of project financings, refinancings and M&A transactions relating to renewables, and in equity bridge financings for wind farm projects and for photovoltaic energy projects.

Experience

Our Firm provided advice to Atlantica Yield in the acquisition of Estrellada S.A., a company belonging to Enel that owned a 50 MW wind farm. Our advice began in a private bidding, in the preparation of non-binding and then binding offers. Our client was awarded on the condition that we were able to sign a “vendor-friendly” stock purchase agreement in 48 hours, and we held marathon negotiation sessions, which ended successfully.
After representing SAETA Yield in the acquisition of the Fingano and Vengano wind farms, which already had a credit facility with IDB, China Fund, BROU and IDB Invest, our Firm represented the sponsor in a new refinancing deal, where a new B-Lender (Sumitomo) was incorporated. This new lender provided a US$60 million additional facility, which was partly used as a return on equity for the sponsor, and the entire credit facility was restructured to reflect the new risk profile of the project following the completion of the construction works and the successful track record of its operations.
Our Firm provided advice to its long-standing client DEG in a co-financing granted by DEG and BROU (local development bank) to Compañía Forestal Uruguaya S.A. (COFUSA) a company belonging to the local Otegui Group, for the acquisition of 12,000 hectares of forested land.
As part of the state electric company UTE’s public policy to diversify its energy matrix and meet renewable energy targets, they developed a 141.6 MW wind park valued in approximately US$225 million. The vehicle for this project was a financial trust set up by UTE. The equity for the project was provided by UTE itself (20%) and the balance through an issuance of equity securities (certificates of participation in the financial trust) in the local capital markets, the bulk of which was sold to institutional investors, and a small portion to retail investors. KfW IPEX Bank GmbH and Bayern LB provided the project’s debt financing through a senior secured long-term facility with an ECA cover by Euler Hermes. Our Firm was local counsel for the lenders, and in such capacity, we participated in the negotiation of all of the project documents (including the structuring of the issuance of equity securities in the capital markets), in the structuring of a security package that involved conveying all the assets of the financial trust into a security trust, and in the preparation of all other finance documents. It should be noted that this structure proposed by our Firm was later replicated by UTE in other wind power projects.
We acted as special counsel to Credit Agricole Corporate and Investment Bank (CACIB) in a project financing for the construction, commissioning, maintenance and operation of a 49.2 MW wind park (valued at approx. US$85 million), developed by Kiyú Parque Eólico S.A., a project company belonging to the Cobra Group.
Our Firm provided advice to the lender and in that capacity conducted the local law due diligence, reviewed the project documents, drafted the security documents, reviewed the finance documents and assisted in the closing of the transaction.
We represented lenders in the syndicated long-term project financing, granted by DEG and PROPARCO to finance the purchase of 12,000 acres of forested land by a local company, which included take-or-pay agreements of the wood with affiliates of the sponsor. A separate tranche was financed by BROU (national development bank) with same security documents to be shared by all lenders. Our lawyers provided advice to DEG and PROPARCO. In that capacity we conducted due diligence, reviewed and negotiated the project documents, reviewed the finance documents, drafted the security documents and assisted in the closing of a transaction worth US$45 million.
Our Firm won a bidding contest called by the Corporación Nacional para el Desarrollo (the governmental agency specializing in the development of infrastructure projects) to assist in the structuring of infrastructure projects. The purpose of one of the trusts is to administrate the grants of the Central Government to UTE (state-owned electric company) with the purpose to cover shortfalls in the amounts necessary to meet the demand needs of electric power (mainly due to shortages in the hydroelectric generation). This trust valued at approx. US$500,000,000 includes a US$200,000 million loan from the World Bank, utilized for the same purpose as the Central Government grant.
Our Firm assisted in the purchase by OHG Mining LP from Trilogy Mining Corporation (Canada), of shares of local companies holding mining rights in Uruguay, for the purpose of funding operational expenses of these companies. The transaction included a due diligence process performed on the Uruguayan corporations and the support of a due diligence performed by foreign counsel on the foreign shareholder of the Uruguayan corporations.
Our Firm assisted Allianz GI and Credit Agricole Securities in a US$ 90 million private placement in order to refinance a construction facility taken out by Parque Eólico Kiyú to finance the construction and operation of a 50 MW wind farm.
Our Firm assisted EKF, Banco Santander and Banco de la República Oriental del Uruguay in a US$140 million project financing of the Luz de Mar, Luz de Río and Luz de Loma (88 MW) wind farms.

Recognition

Dentons achieves 157 rankings in Chambers Latin America 2025

August 23, 2024

Independent legal publisher Chambers and Partners continues to recognize Dentons lawyers as market leaders throughout Latin America and the Caribbean.

News and Events

Recent Press Releases

Dentons achieves 157 rankings in Chambers Latin America 2025

August 23, 2024

Independent legal publisher Chambers and Partners continues to recognize Dentons lawyers as market leaders throughout Latin America and the Caribbean.

Regional Capabilities

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Environment and Natural Resources in Uruguay

Environment and Natural Resources in Uruguay

Experience

Recognition

Dentons achieves 157 rankings in Chambers Latin America 2025

News and Events

Recent Press Releases

Dentons achieves 157 rankings in Chambers Latin America 2025

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Helping our clients everywhere

Environment and Natural Resources in Uruguay

Environment and Natural Resources in Uruguay

Experience

Recognition

Dentons achieves 157 rankings in Chambers Latin America 2025

News and Events

Recent Press Releases

Dentons achieves 157 rankings in Chambers Latin America 2025

Regional Capabilities

Regions

Countries

Share

How can the world's largest global law firm help you today ?

Contact us or find an office in your location.

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