Milbank LLP advised the Metropolitan Municipality of Lima as originator of a new securitization program of up to a maximum outstanding amount of S/1.545 billion and originator and guarantor in the first issuance thereunder by Credicorp Capital Sociedad Titulizadora S.A., on behalf of the Lima Infrastructure Trust II, of S/1.3 billion in aggregate principal amount of 9.700% securitization bonds due 2045.
The bonds are backed by the FONCOMUN transfers, Real Estate Tax, and Casino and Slot Machine Tax. The proceeds of the bonds will be used to partially finance a portfolio of seven public investment projects that address infrastructure and public service gaps.
Milbank previously advised the Metropolitan Municipality of Lima on its consent solicitation and reopening of securitization bonds backed by the Alcabala Tax and Motor Vehicle Tax, and on its inaugural international bond offering, which featured the first-ever 20-year term bond offering denominated in Soles and the first-ever Lima government offering in the international capital markets.
The Milbank team was led by Marcelo Mottesi, chair of the firm’s Corporate Finance and Securities practice and co-head of the firm’s Latin America group, along with special counsel Andres Osornio Ocaranza, associates Agustin Videla and Pamela Molina and international attorney Ernesto de la Peña. The team also included Tax partner Andrew Walker and associate Michelle Song.
