1 July 2014
Mayer Brown, a leading global law firm, announced today that it represented Goldman, Sachs & Co., BBVA, and Credicorp Capital as underwriters and loan arrangers on the approximately $520 million senior secured bond and an approximately $200 million senior secured loan for Rutas de Lima S.A.C. for a public-private partnership (PPP) toll road project in Lima, Peru. The project comprises the maintenance, expansion and operation of 98 kilometers of existing roads and the construction, operation and maintenance of 19 kilometers of new roads, intended to reduce traffic congestion and increase efficiency of the commercial exchange among Lima, the port of Callao and provinces located to the north, center and south of Peru.1
The transaction represents one of the largest and most sophisticated project financings in 2014, as it combines financing from commercial banks as well as funding from local and international investors in a Rule 144A/Regulation S project bond. While the commercial bank funding is provided by Peruvian commercial banks Banco de Crédito del Perú, BBVA Continental and Interbank, the bond portion included two issuances: one global PEN tranche (that is, Peruvian local currency settled in dollars) and another tranche in inflation-indexed Peruvian currency. The issuance of the global PEN tranche provides an investment-grade opportunity for investors outside Peru seeking direct exposure to the Peruvian exchange rates. The inflation-adjusted tranche provided for deferred funding by investors, in order to mitigate the negative carry associated with bond financing of infrastructure projects with extended construction periods.
Mayer Brown’s involvement in the Rutas de Lima transaction continues its pioneering role in the fast-developing Latin American project bond sector. Most recently, the firm advised the underwriters on the $432 million issuance of a senior secured project bond by Abengoa Transmisión Sur for a key energy transmission line in Peru. Earlier, Mayer Brown advised issuers CE Oaxaca Dos and CE Oaxaca Cuatro in the issuance of the project bonds for two Mexican wind farms and the underwriter and lenders in the mixed project bond and commercial bank financing of the Vía Parque Rímac toll road in Lima.
The Mayer Brown team was led by Banking & Finance partner Christopher Erckert (New York/Washington DC) and included, among others: Corporate & Securities – partner David Bakst (New York); and Banking & Finance – associates Jane Kang and Augusto Ruiloba (both New York). Christopher also led the Mayer Brown teams in the Abengoa Transmisión Sur, Oaxaca Dos, Oaxaca Cuatro and Vía Parque Rímac transactions.
All amounts have previously appeared in the public domain.