BLP strengthens energy company ties with AIM fundraising

Berwin Leighton Paisner (BLP) has advised Clean Energy Brazil , a company that invests in the Brazilian sugar and ethanol energy production sector, on a £20.8m fundraising on AIM.

The proceeds will be used to finance the company’s $64m (£31m) joint venture cash and shares investment in Brazilian company Unialco. The latter counts greenfield and operating sugar cane plantations, a sugar mill, an ethanol distillery and a sugar factory among its Brazilian assets.

BLP’s head of corporate finance David Collins led the team acting for Clean Energy Brazil, having advised the company since it was established by brokers Numis Securities in December 2006.

Collins said about the sector: “The whole political issue of climate change is of great interest. You have traditional resources companies as well as new players and investors coming in and operating funds. The strategy is to follow the first mover advantage in long term plays, hoping that you are part of the technology that will be successful.”

As an advantage over other clean energy companies, however, investment in sugar cane can also be sold in its own right to meet sugar demands, he added.

Rosenblatt partner Jon Lovitt advised Numis Securities, which acted as nominated adviser on the fundraising, while Brazilian target company Unialco was advised by Brazilian firm Araœjo e Policastro.