17 April, 2018 Peru

Peruvian water project gets financing

Banking, Finance and Capital Markets

Garrigues (Peru) has helped local water distribution company CODESUR obtain a loan worth 396 million Peruvian soles (US$128 million).

BBVA Banco Continental acted as lender while Continental Sociedad Titulizadora acted as trustee in the financing. Both banks relied on Philippi Prietocarrizosa Ferrero DU & Uría (Peru) for the deal, which closed on 1 March.

Estudio Echecopar member firm of Baker McKenzie International advised Citibank del Peru, which acted as trustee of SEDAPAL, a collection trust through which the concession rights are paid.

The financing will be granted through a securitisation trust, which will acquire certain concession rights from CODESUR. The cash flows derived from these concession rights will be used for the repayment of the financing.

The loan will be used to help finance the construction of infrastructure related to the Provisur project – a 25-year concession which will provide potable water and wastewater treatment services for Punta Hermosa, Punta Negra, San Bartolo and Santa María del Mar, four of the 43 districts that make up the province of Lima. The project will use desalination to convert sea water into drinking water.

Counsel to Concesionaria Desaladora del Sur

Garrigues (Peru)
Partner Oscar Arrús and associate Jorge Fuentes

Counsel to BBVA Banco Continental and Continental Sociedad Titulizadora

Philippi Prietocarrizosa Ferrero DU & Uría (Peru)
Partner Ronald Fernandez-Davila and associates Gabriela Cuadros, Aouda del Castillo and Sergio Rodriguez

Counsel to Citibank del Peru

Estudio Echecopar member firm of Baker McKenzie International

Partner Juan Carlos de los Heros and associate Andrea León