Mayer Brown, a leading global law firm, announced today that it represented BNP Paribas Securities Corp. and HSBC as underwriters on the $432 million issuance of a senior secured project bond by Abengoa Transmisión Sur (ATS). The project comprises the design, construction, development, ownership and operation of a transmission line that will provide power connectivity from Lima to south-western Peru. The ATS project spans 885 kilometers—more than half the length of the country—and is a fundamental part of the Peruvian government’s plan to increase the reliability of the national electric grid.

This project bond is significant because it represents one of the very few international placements of a project bond for a Latin American project and the first to be issued with a 29 year tenor. The bond is the largest dollar-denominated project bond ever issued for a Peruvian project.

Mayer Brown’s participation in this transaction continues its pioneering role in the fast-developing Latin American project bond sector. The firm previously 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, Peru, among other widely-reported Latin American project bonds.

The Mayer Brown team was led by partners Christopher Erckert (Banking & Finance, New York/Washington DC) and David Bakst (Corporate & Securities, New York) and included Banking & Finance partner Curtis Doty (New York) and associates Sean Kulkarni (Washington DC) and Augusto Ruiloba (New York).