Clifford Chance

Clifford Chance advises PETROPERU on US$1 billion notes issuance for Talara Refinery Modernization Project

Leading international law firm Clifford Chance, led by Capital Markets partners Hugo Triaca and Per Chilstrom, advised Petróleos del Perú – Petroperú S.A. (PETROPERU), the largest hydrocarbon producer in Peru and the largest single enterprise wholly-owned by the Peruvian sovereign, on its successful return to the international capital markets since its debut transaction in 2017 with a reopening issuance of US$1 billion of 5.625% Notes due 2047 (the Notes), in a private placement transaction conducted pursuant to Rule 144A and Regulation S under the US Securities Act.

PETROPERU will use used the proceeds from the issuance of the Notes and additional cash to finance the completion of the Talara Refinery Modernization Project. This project is an engineering megaproject expected to increase the efficiency of PETROPERU's production process and reduce the environmental impact of its operations, and was declared of national public interest due to its importance to preserve air quality and the protection of public health in Peru. The transaction closed on February 11, 2021.

The Firm's wider transaction team included associates Mariana Estevez and Edwin Ramirez-Homs, and Rossmery Romero. Partner Avrohom Gelber and law clerk Allison Kelly advised on tax matters.

Clifford Chance advises on many of the landmark transactions in the Latin American market, including involving sub-sovereign issuers in the region. Recently, the firm advised Peruvian state-owned development bank COFIDE on its successful return to the international capital markets after 5 years with a bond issuance and a concurrent tender offer, and also EPM, the leading multi-utility services company in Colombia, on a dual-tranche offering. The firm also advised on Grupo Energía Bogotá's last international bond issuance.