Home

Atlas shows the path to how treasury can empower solar ambitions

Published: Sep 2024
Adam Smith Awards 2024 logo

Best in Class Treasury Solution in Latin America

Highly Commended Winner

Atlas Renewable Energy

Photo of Ruya Niazi, J.P. Morgan.

Mariana Moraes

Structured Finance Director
Atlas Renewable Energy logo

Atlas Renewable Energy, founded in 2017, was established by a team of executives with a strong history of leading numerous renewable energy projects across Latin America and Europe, as well as driving industry trends. The company has over 6 GW of contracted projects and specialises in developing, constructing and operating large-scale renewable energy projects, including solar, wind and battery energy storage systems (BESS).

in partnership with

J.P. Morgan logo

The challenge

The Vista Alegre Solar Complex in Minas Gerais in south-eastern Brazil comprises 18 giant PV parks. In a flagship green energy development, Atlas Renewable Energy’s latest solar development aims to produce about 2,000 GWh yearly, which is equivalent to supplying more than a million Brazilian homes with clean, renewable energy and preventing about 154,000 tons of CO2 from being released to the atmosphere. Vista Alegre, which has an installed capacity of 902MWp, is considered one of the largest solar plants to be built in Latin America and will supply power to Albras, Brazil’s largest aluminium producer under a 21-year Power Purchase Agreement (PPA), a unique dollar contract. However, the rollout of the ambitious and challenging build was only possible through an energy-saving and robust treasury strategy.

Atlas secured a US$447.8m loan from Brazil’s National Bank for Economic and Social Development (BNDES). However, balancing onshore Brazilian Reais and offshore US dollar flows across 66 escrow and demand deposit accounts (DDAs) behind the facility was a significant project challenge.

Another challenge was managing FX risk and minimising exposure during construction while moving funds across borders, all the while facilitating imports, and the service payments required for project execution.

The solution

Atlas worked with J.P. Morgan and the bank’s ACCESS platform to secure visibility and control over the escrow and DDA accounts network. Treasury was able to access automated reporting, entitlement security and direct disbursement control in USD and BRL currencies.

Moreover, the platform allowed Atlas to navigate currency fluctuations effectively. Strategic trades facilitated the movement of funds across borders, minimising FX risk exposure while facilitating the construction. The platform also allowed the company to integrate escrow and DDA accounts on a single platform, streamlining Atlas’ treasury operations and enhancing overall efficiency. Integrating these pioneering digital treasury tools reinforces Atlas’s position as a leader in the field and sets an example for organisations worldwide.

Best practice and innovation

Atlas has successfully navigated currency fluctuations during the project’s construction, safeguarding its financial integrity while facilitating essential imports and service payments. These efforts, backed by metrics including operational efficiency, transparency and sustainable impact, underscore Atlas’ leadership and innovation in the renewable energy landscape.

Key benefits

  • Process efficiencies.

  • Increased automation.

  • Improved visibility.

  • Number of banking partners/bank accounts reduced.

  • Manual intervention reduced.

  • Increased system connectivity.

  • Improved key performance indicator (KPI) metrics.

Vitor Rangel

Executive Director, J.P. Morgan Payments

Atlas Renewable developed Project Vista Alegre, a 902MWp solar farm, their largest project yet. It has a USD Power Purchase Agreement (PPA) with Albras; Latin America’s largest PPA Solar company, aiding Albras in meeting sustainability goals. J.P. Morgan supported the project by providing FX, connectivity, cash accounts and escrow solutions in Brazil and the USA, enhancing Atlas’s financial and operational efficiency. J.P. Morgan congratulates Atlas on this significant achievement and is honoured to have collaborated with Atlas on this important transaction.

in partnership with

J.P. Morgan logo
Adam Smith Awards sail

The Adam Smith Awards are the industry benchmark for best practice and innovation in corporate treasury. The 2024 awards attracted 389 nominations. To find out more please visit treasurytoday.com/adam-smith-awards

All our content is free, just register below

As we move to a new and improved digital platform all users need to create a new account. This is very simple and should only take a moment.

Already have an account? Sign In

Already a member? Sign In

This website uses cookies and asks for your personal data to enhance your browsing experience. We are committed to protecting your privacy and ensuring your data is handled in compliance with the General Data Protection Regulation (GDPR).