DLA Piper advises BTG Pactual on landmark $132.8 million project bond for power project in Peru
10 Dec, 2013
DLA Piper advised BTG Pactual as arranger and placement agent of a $132.8 million project bond offering by Planta de Reserva Fría de Generación de Eten S.A., a Peru-based power generation company, to finance a 20-year concession to build, develop, operate and maintain a new thermal cold reserve power plant, transmission line and related infrastructure in the Reque district in the province of Chiclayo, Peru. The transaction closed on December 5.
The project will provide a reserve electricity source to the National Interconnected Electricity Framework (SEIN) of Peru that can be used in periods of increased demand or shortage of supply. It will also provide energy in circumstances where it is more efficient for the SEIN to receive energy on a reserve, standby basis.
This is the first international greenfield project bond in Latin America, the first power plant project bond in Latin America and the first international project bond in Latin America with a partial credit guarantee, making it a landmark transaction in the project finance field.
The DLA Piper team representing BTG Pactual was led by Gianluca Bacchiocchi, a partner in the Corporate and Finance practice in Chicago, and included Fernando Rodriguez-Marin, Jeffrey Susskind and Diego Harman in New York.