Milbank LLP represented the Metropolitan Municipality of Lima as originator and guarantor in the reopening by Credicorp Capital Sociedad Titulizadora S.A., on behalf of the Lima Infrastructure Trust II, of S/245 million in aggregate principal amount of 9.700% securitization bonds due 2045. The bonds are backed by FONCOMUN transfers, Real Estate Tax, and Casino and Slot Machine Tax, issued under the Metropolitan Municipality of Lima FONCOMUN, Real Estate Tax and Casino and Slot Machine Tax First Securitization Program of up to a maximum outstanding amount of S/1.545 billion.
The proceeds of the securitization bonds reopening will be used to finance fully or partially a portfolio of several public investment projects addressing infrastructure and public service gaps.
This is the forth issuance of securitization bonds by the Metropolitan Municipality of Lima, following (i) the first issuance and its reopening made by Credicorp Capital Sociedad Titulizadora S.A., on behalf of the Lima Infrastructure Trust I, of S/2.455 million in aggregate principal amount of 10.100% securitization bonds due 2043, which were the first-ever bond offering denominated in Soles with such a long term (20 years) and the Metropolitan Municipality of Lima became the first-ever local government to issue bonds of this nature in the capital markets; and (ii) the first issuance made 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 backed by the FONCOMUN transfers, Real Estate Tax, and Casino and Slot Machine Tax, issued under the Metropolitan Municipality of Lima FONCOMUN, Real Estate Tax and Casino and Slot Machine Tax First Securitization Program of up to a maximum outstanding amount of S/1.545 billion.
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, associate Pamela Molina and international associate Hector Avila. The team also included Tax partner Andrew Walker and associate Michelle Song.
