December 6, 2018
Clifford Chance advises Allianz Global Investors on private placement refinancing for Peruvian wind farms
Clifford Chance advised Allianz Global Investors U.S. LLC (acting on behalf of its clients) in connection with the fixed rate US$250 million 18-year 4(a)(2) private placement to refinance the Peruvian wind farms Parque Eólico Marcona S.A.C. and Parque Eólico Tres Hermanas S.A.C.
Credit Suisse Securities (USA) LLC acted as the sole placement agent and bookrunner of the notes. The notes were rated "BBB-" with a stable outlook by Fitch. Credit Suisse privately placed the notes to AllianzGI, which has made the investment on behalf of its clients. The sponsor, Sigma Fondo de Inversión en Infraestructura – Sigma FI, is one of the largest investment fund managers in Peru. The wind farms are located in the Marcona district in the province of Nazca in Peru, and collectively they generated over 60% of total wind energy in Peru during 2017. The projects have long-term power supply and concession agreements with the Peruvian government, represented by the Ministry of Energy.
"Private placements are becoming increasingly common for the financing and refinancing of energy and infrastructure assets," said Banking and Finance partner Gianluca Bacchiocchi, who led on the deal. "Institutional investors are gravitating towards private placements because they offer more tailored terms and conditions than are available in a 144a / Reg S bond financing."
Lead associate Luis Maria Clouet added, "One of the key challenges in this transaction was that it involved a simultaneous acquisition by Sigma of the remaining percentage of the project companies it did not own from Cobra, a subsidiary of the ACS Group, and a refinancing of the existing debt of both wind farms."
The Firm's team also included Capital Markets partner Hugo Triaca and law clerk Kiara Spoerer.