First international issuance by government-owned Aeropuerto Internacional de Tocumen will finance airport’s expansion, including new south terminal
Milbank, Tweed, Hadley & McCloy LLP has advised Citigroup Global Markets Inc. as sole initial purchaser of $575 million in senior secured notes issued by Aeropuerto Internacional de Tocumen S.A., the Panamanian government-owned operator of the country’s principal airport, in Panama City.
It was the first international bond offering by Tocumen S.A. Proceeds from the 5.625% notes, due 2036, will help fund continued expansion of the airport, including construction of a new south terminal. The notes were listed on the Panamanian Stock Exchange and secured by a trust account structure under Panamanian law.
Milbank partner Marcelo Mottesi led the Milbank deal team, along with special counsel Ben Garcia and associates Kaveh Namazie, Donald Canavaggio and Felipe Lima.
Mr. Mottesi, head of Milbank’s Global Capital Markets practice and a member of the firm’s Latin America Group, said: “Milbank is pleased to play a key role in another significant infrastructure capital markets transaction that will strengthen infrastructure and transportation services in Latin America. Market interest in Tocumen’s first international offering shows confidence in the growth of the airport as a regional hub for Central America and the Caribbean and as a gateway to South America.”
Dan Bartfeld, head of Milbank's Global Project Finance Group, said: "This financing showcases one of the many financing options available for airport financings in Latin America. We have seen bank financings and ECA/multilateral financings in recent years, and now a very major cross-border notes issuance. We expect to see more financings like this going forward, and perhaps even a trend towards multi-tranche financings in this sector.”
Milbank is currently working on several other airport financings in Latin America.
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