Clifford Chance

A multi-office Clifford Chance team advises on private placement refinancing for Norte II in Mexico

A multi-office Clifford Chance team advised the investors and The Export-Import Bank of Korea ("KEXIM") in connection with a Section 4(a)2 private placement of (i) 3.30% covered notes due 2037 for an aggregate principal amount of US$250,000,000 (the "Covered Notes") and (ii) 5.70% uncovered notes due 2037 for an aggregate principal amount of US$151,277,289 (the "Uncovered Notes" and, together with the Covered Notes, the "Notes"), issued by KST Electric Power Company, S.A.P.I. de C.V. (the "Issuer") and placed by Credit Agricole Securities (USA) Inc., as placement agent.

The Issuer used the proceeds from the Notes to refinance indebtedness incurred to finance the development of a 433 MW Norte II thermoelectric plant in operation tendered by CFE under an IPP – PIDIREGAS scheme ("the Norte II Plant"), located in Chihuahua, Mexico. The Norte II Plant was developed by a consortium comprising Korea Electric Power, Samsung and Techint. At the time of its original financing, the Norte II Plant was the first independent power producer project awarded by Mexico's Federal Electricity Commission since 2007.

The Covered Notes were purchased by international investors and guaranteed by KEXIM while the Uncovered Notes were purchased by Korean investors. This is the first project bond/note transaction guaranteed by KEXIM. The refinancing also signifies the continued cooperation between Mexico and Korea, which has expanded market access in Latin America for Korean companies. This transaction highlights Clifford Chance's unique capabilities to serve clients around the globe, coordinating across multiple offices and time zones.

The Clifford Chance deal team included the following lawyers across four offices:

• New York: partners Hugo Triaca and Jon Zonis and associate Edwin Ramirez-Homs
• Washington, DC: special legal consultant Alan Sakar and associate Greg Jehle
• Singapore: partner Nicholas Wong
• Seoul: counsel Bong-Sang Cho

The Clifford Chance deal team was also assisted by tax partner Avrohom Gelber and L&DR partner Megan Gordon and associate Ekaterina Hazard.