First wind-power debt financing in Peru; First Latin American issuer to sell green bonds; Milbank continues prominent role in energy-related financings across Latin America
Continuing its strong run of Latin America financing deals in the renewables sector, Milbank, Tweed, Hadley & McCloy LLP advised Goldman Sachs & Co. and BofA Merrill Lynch as initial purchasers of $204 million in 144A/Regulation S green bonds issued by Peruvian wind-energy producer Energía Eólica S.A. Energía Eólica is a subsidiary of ContourGlobal, headquartered in New York. This is the first Latin American issuer to sell green bonds in Peru.
Securities partner Paul Denaro led the Milbank team on the transaction, the first such wind-power financing in Peru. In the last 18 months, Mr. Denaro has led transactions resulting in the issuance of over $100 billion of debt and equity securities in the capital markets.
Energía Eólica will use proceeds from the private offering of 6.000% amortizing secured notes due 2034 to refinance existing indebtedness related to the recent construction of two wind-power projects, among other uses. The company operates two facilities in northwestern Peru – Cupisnique, with 83.18 megawatts of installed capacity; and Talara, with 30.855 Mw of installed capacity. The projects were completed in September 2014 and connected to Peru’s power grid.
“Wind and solar power, in particular among renewables, are growing industries in Latin America, further demonstrated by the significant investor interest in Energía Eólica’s green bond issuance,” said Mr. Denaro. “Milbank is very pleased to participate in another important energy-related financing in Peru.”
In addition to Mr. Denaro, the Milbank team advising the underwriters included Marcelo Mottesi, Milbank’s head of Global Securities; Securities special counsel Ben Garcia; Tax partner Andrew Walker; Securities associates Kaveh Namazie and Donald Canavaggio; Project Finance associates Andrew Compton and Kimberly Timko; and international lawyer Diego Sanchez.
Additionally, J&A Garrigues Peru S.R.C.L. acted as Peruvian counsel to the initial purchasers, while Gómez-Acebo & Pombo Abogados, S.L.P. acted as Spanish counsel.
Milbank’s recent Peruvian energy transactions include advising international lenders in the $300 million financing for a 593-Mw cold reserve power plant; acting as counsel to Peru’s leading natural gas transporter in its $850 million debt offering; and representing initial purchasers in issuances by Peruvian consumer products, mining, and banking companies.
Milbank also advised EDC in its green bond program which was the second SEC-registered green bond.
About Milbank
Milbank, Tweed, Hadley & McCloy LLP is a leading international law firm providing innovative legal solutions to clients throughout the world for more than 145 years. Milbank is headquartered in New York and has offices in Beijing, Frankfurt, Hong Kong, London, Los Angeles, Munich, São Paulo, Singapore, Tokyo and Washington, DC.
The firm’s lawyers provide a full range of legal services to the world’s leading commercial, financial and industrial enterprises, as well as to institutions, individuals and governments. Milbank’s lawyers meet the needs of its clients by offering a highly integrated and collaborative range of services across key practice groups throughout its global network. Milbank’s integrated practice is underpinned by its attorneys’ acknowledged technical excellence, sectorial expertise and a strong tradition of innovation and client service.
