Firm advises Bank of Tokyo-Mitsubishi, HSBC and SMBC in financing 593-megawatt plant; Project tied to development of two other large energy projects in southeast Peru
NEW YORK, December 24, 2014 - In its latest large energy transaction in South America, Milbank, Tweed, Hadley & McCloy LLP advised three international lenders in the approximately $300 million financing for a 593-megawatt cold reserve power plant to be located in the southern coastal region of Peru.
A Milbank team led by New York-based partner Daniel Bartfeld represented The Bank of Tokyo-Mitsubishi UFJ, HSBC Bank USA, N.A., and Sumitomo Mitsui Banking Corp. in connection with the 593-megawatt project, which will be owned and operated by a subsidiary of Israel-based IC Power.
The plant is to be located in Mollendo, in the region of Arequipa, about 480 miles southeast of Lima. An associated 500-kilovolt gas-insulated substation, and 36-mile transmission line connecting the cold reserve plant to a substation in the nearby district of La Joya, are also in development.
Proceeds of the seven-year loan will be used to support costs of the three construction projects.
“Peru’s strong economic growth has spurred energy demand, making this project in the southern part of the country especially vital,” said Mr. Bartfeld. “Peru is attempting to meet the higher demand by decentralizing energy generation, and these international lenders see the importance of supporting Peru’s long-term energy goals. Milbank is delighted to once again play a role in a significant energy-related financing in Peru.”
Mr. Bartfeld was assisted on the transaction by senior associate Sara Thompson and associates Laura Verlangieri and Matthew Bogdan; and Alternative Investments partner Eric Moser and associate Brian Lee.
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.
