Spanish law firm Garrigues was involved in two of the largest project finance transactions in the region this past year: Covipacifico and Lima Metro Line 2.
Garrigues advised the sponsor on the Lima Metro Line Two project, Iridium, from when it first bid for the public-private partnership (PPP) concession. After Iridium won, Garrigues took on a more corporate role helping to structure and negotiate contracts.
The project was financed via two historic transactions, a loan and bond financing. The bond component was the largest debt capital markets transaction in Peru’s history, raising $1.15 billion via a 15-year 5.875% note in a transaction led by Citibank, Morgan Stanley and Santander. The loan was the largest of its kind to be backed by Peruvian government payments, known as RPIs.
“It’s not a plain vanilla transaction,” says Oscar Arrús, a partner in Lima.
In addition to Lima Metro Line 2 , the firm also advised other projects such as Covipacífico, Red Dorsal, Très Hermanas, Chavimochic, Gasoducto Sur Peruano and Provisur.
“We work a lot with international banks, where the standards and expectations are elevated,” says Arrús. “Some contracts have many holes and the ratings agencies will ask many questions. Our role is to give comfort to the multilaterals and provide technical opinion. We have a lot of experience in technical matters.”
Garrigues has offices in Brazil, Chile, Colombia, Mexico and Peru. It has around 1,500 lawyers and some 180 partners worldwide. LF
WINNER: Garrigues
LATAM STAFFERS: 103
LATAM OFFICES: Bogotá, Lima, Mexico City, Santiago, São Paulo
HEAD PARTNERS: Thomas Thorndike, Oscar Arrús
NOTABLE DEALS: Covipacífico, Lima Metro Line 2