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Allen & Overy advises Scania Finance Chile S.A.’s financing agreement providing 265 buses for Chilean public transport

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Allen & Overy (“A&O”) today announced its advisement of Scania Finance Chile S.A. (“Scania”) in a project financing in connection with the supply of 265 Euro VI diesel buses to VOY, the public transportation operator in Santiago, Chile. The buses will be provided through a ten-year, tri-partite lease agreement with VOY and the Ministry of Transport and Telecommunications of the Republic of Chile (“MTT”). 

Under the agreement, VOY will receive remuneration in the form of Chilean pesos from the MTT for servicing bus routes in Santiago’s “RED system,” and in turn will provide monthly remuneration to Scania in U.S. dollars. Not only will this help provide consistent transportation services to the people of Santiago, it will also help the MTT reduce emissions and improve the system’s overall efficiency and fleet flexibility.

“The A&O team is very pleased to advise a transaction improving the dependability of Santiago’s public transportation services, while also helping the city elevate its sustainability efforts,” said Bruno Soares, head of A&O’s São Paulo office and partner in A&O’s global Projects, Energy, Natural Resources and Infrastructure (PENRI) practice. “We look forward to advising similar project financing agreements as governments in Latin America and around the globe generally continue to prioritize initiatives that [promote] growth or efficiency in an ESG conscious fashion.” 

The transaction was led by partner Bruno Soares and supported by senior counsel Andre Teixeira and associate Eduardo Kappel.