Key takeaways
- Managing the largest renewable energy U.S. dollar (USD) loan secured with Brazil's National Bank for Economic and Social Development (BNDES) demanded meticulous control over onshore and offshore flows, posing a complex treasury challenge for Atlas Renewable Energy (Atlas)
- Atlas implemented J.P. Morgan Access®, providing full visibility and control over the project's accounts, streamlining operations and helping mitigate FX risks effectively
- The collaboration with J.P. Morgan Payments enhanced operational efficiency with a focus on the project roadmap, while aligning with Atlas' core values
The challenge
In an era where sustainability is paramount, Atlas has emerged as a leader in financial innovation and commitment to environmental, social and governance (ESG) principles.1 Founded in 2017, Atlas has become the largest independently owned renewables Independent Power Producer in Latin America, with a portfolio boasting over 2.3 GW of operating projects and a further 3.5 GW under development, construction and operation.2
The Vista Alegre Solar Plant in Minas Gerais, Brazil, epitomizes Atlas' commitment to sustainable energy solutions. With a generation capacity of 902 MWp and an estimated annual production of 2 TWh, the plant is poised to benefit over a million people, while preventing approximately 154,000 tons of CO2 emissions annually.3
Undertaking the Vista Alegre project presented Atlas with challenges, particularly in effectively managing its financing and cash flows. Securing the largest renewable energy USD loan with BNDES, totaling $447.8 million, demanded meticulous treasury management controls, especially concerning onshore Brazilian Reais (BRL) and offshore USD flows between escrow and demand deposit accounts (DDA).1 Integration of FX capabilities was crucial for mitigating currency risks inherent in such large-scale projects.
“J.P. Morgan Payments is very active with our efforts. It’s a team that can solve your problems and is always on speed dial.”
Mariana Moraes
Structured Finance Director, Atlas Renewable Energy
The solution
In response to Atlas' treasury requirements, J.P. Morgan Payments helped devise a comprehensive solution leveraging its digital treasury management tools suite, notably J.P. Morgan Access®. According to the Structured Finance Director at Atlas Renewable Energy Brazil, Mariana Moraes, this platform offers Atlas complete visibility and control over the network of 66 accounts involved in the Vista Alegre project, spanning escrow and DDA. Automated reporting, entitlement security and direct disbursement control in USD and BRL currencies ensure seamless treasury operations.
Moreover, J.P. Morgan Payments foreign exchange (FX) management expertise enabled Atlas to navigate currency fluctuations effectively. Strategic trades facilitated the movement of funds across borders, minimizing FX risk exposure, while facilitating imports and service payments crucial for project execution:
- Escrow and DDA integration: The J.P. Morgan Payments platform integrates escrow and DDA on a single platform, streamlining Atlas' treasury operations and enhancing overall efficiency
- Operational efficiency: By entrusting its treasury management to J.P. Morgan Payments, Atlas can confidently execute its challenging project roadmap, knowing that its financial operations are in capable hands
- Alignment with core values: As a company committed to transparency and sustainability standards, Atlas' collaboration with J.P. Morgan Payments aligns with its core values
Beyond project development, Atlas has institutionalized sustainability metrics, integrating ESG considerations into investment decisions and implementing rigorous KPIs to gauge performance through an earth-first lens. Guided by the United Nations Sustainable Development Goals (SDGs), this holistic approach fortifies Atlas' financial resilience, underpinning long-term value creation.4
“The J.P. Morgan Payments team makes our processes seamless.”
Mariana Moraes
Structured Finance Director, Atlas Renewable Energy
The results
In collaboration with J.P. Morgan Payments, Atlas has embraced digital treasury management tools to navigate the complexities of modern finance with precision. Through the integration of escrow and DDA, and the implementation of strategic FX management, Atlas has bolstered financial resilience and optimized liquidity management, mitigating risks in an increasingly dynamic global landscape. Notably, this collaboration has facilitated efficient capital deployment, enabling Atlas to execute its project swiftly and precisely.
As the Vista Alegre Solar Plant continues to evolve, it serves as a testament to the
transformative power of sustainable finance in driving positive environmental and social change. By championing responsible sourcing practices, Atlas cultivates a sustainable supply chain and forges partnerships with suppliers committed to ethical integrity and environmental stewardship.
To learn more, visit https://www.jpmorgan.com/payments/solutions/access
References
Atlas Renewable Energy. "Atlas Renewable Energy Receives the Largest-Ever Renewable Energy USD Loan from BNDES for Latin America’s Largest Solar PPA" Accessed June 11, 2024
Atlas Renewable Energy. "Sustainability" Accessed June 11, 2024
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