PROJECT FINANCING - Paving the Way

PROJECT FINANCING - Paving the Way

Brazil Corporate & Sovereign Strategy

Odebrecht Oil & Gas’s $1.5 billion senior secured 6.35% 2021 bond may not have been the region’s first drillship bond, but it is certainly the largest and the one that became a template for other project bonds to follow. Designed to take out the loan that initially financed the building of the Norbe VIII and IX deepwater drillships, the bond essentially helped create what will become an increasingly important new asset class. “This is the first time we mimicked a project finance structure and repackaged it to bond investors,” says Andre Silva, co-head for debt capital markets at Deutsche Bank, which led the transaction along with Banco do Brasil, HSBC and Santander. “This is risk that ba

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