Abengoa refinances Peruvian transmission project

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Abengoa refinances Peruvian transmission project

Abengoa has closed a US$432 million senior secured bond issuance to refinance a 500kV Peruvian transmission line

BNP Paribas Securities Corp. and HSBC acted as underwriters on the issuance of a senior secured project bond by Abengoa Transmisión Sur (ATS).

Shearman & Sterling advised Abengoa Transmisión Sur S.A., Abengoa, S.A, Asa Iberoamérica S.L., and Abengoa Perú S.A. in connection with the purchase and sale of US$432 million principal amount of the Abengoa Transmision Sur S.A.’s 6.875% Senior Secured Notes due 2043.

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 30 year tenor. The bond is the largest dollar-denominated project bond ever issued for a Peruvian project.

ATS consists of three sequential 500kV transmission lines and three new substations, extending along 883 kilometers. The transmission line connects the Chilca substation, located nearly 60 kilometers south of Lima to the Poroma, Ocona, and Montalvo substations in southern Peru, along with two short 220kV transmission lines linking to existing substations.

The project operates under a 30-year concession agreement granted by the Government of Peru through the Ministry of Energy and Mines (MINEM). The concession agreement was granted on April 30 2010, executed on 22 July 2010 (the Concession Date), and commenced on 17 January 2014 (Commercial Operation Date).

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