Allen & Overy LatAm practice recognized in the 2022 Latin Lawyer “Deal of the Year” Awards
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The deal was comprised of IDB Invest’s USD65m A Loan and USD50m B Loan, where the B Loan is supported by a participation that is funded through the private placement of a 20-year B-Bond. This hybrid A Loan/B-Bond financing structure—a first for the Peruvian project finance market—was tailored to Salaverry Terminal International’s debt capacity over the remaining lifespan of the 30-year PPP concession and combined the flexibility of an A loan and the long tenor of a project bond financing.
Allen & Overy has successfully advised IDB Invest on multiple deals under this innovative B-Bond structure, including a first-of-its-kind sustainability-linked bond financing to Liberty Costa Rica (on a Rule 144A/Regulation S basis), the financing for the Cardal Transmission Project in Uruguay and the refinancing for the development and operation of the El Naranjal and Del Litoral solar projects in Uruguay.
In addition to the creative structure, the award also recognized the complex nature of the transaction, which involved the coordination of multiple parties, including the borrower, the Peruvian government, the port regulator, the B-Bond investors, the trustee, the security agent and IDB Invest. It also required the structuring of a long-term financing solution that aligned with the concession agreement, regulatory framework and market conditions.
Two Allen & Overy teams separately represented IDB Invest as well as Prudential, Metlife and Cigna as institutional investors on the refinancing. The IDB Invest team was led by Washington D.C.-based partner Sami Mir with support from associates Sagarika Sridhar and Sara Douki; and the institutional investor team was led by New York-based partner David Flechner with support from associates David Birch and Daniel Mortati.
Sami Mir commented: “We are delighted to have won this prestigious award, which reflects our expertise and experience in advising on complex and innovative project finance transactions in Latin America. We are proud to have supported IDB Invest and Salaverry Terminal International in achieving this milestone for the development of the Salaverry Port, which will enhance the connectivity and competitiveness of the Peruvian economy.”
The Latin Lawyer Deal of the Year Awards celebrate the most outstanding legal work across Latin America. The winners were announced in São Paulo, Brazil on May 11, 2023.