Clifford Chance

Clifford Chance advises on refinancing for Rutas 2 y 7 road project in Paraguay

Leading international law firm Clifford Chance has advised the Inter-American Investment Corporation (IDB Invest) and the Inter-American Development Bank (IDB) on the purchase of US$218.5 million 15-year bond issuance to refinance the "Rutas 2 y 7" road project in Paraguay, which is owned by Sacyr Concesiones and Ocho A. The proceeds of the bond will be used to refinance the existing credit facility provided by IDB and IDB Invest to concession-holder Rutas del Este in 2019, as well as to finance the remaining works of the project.

This issuance structured by IDB Invest and IDB marks the first ever 4(a)(2) private placement structured and purchased by a multilateral institution in Latin America to finance a project with ongoing construction risk. The bond was issued under a novel delayed-draw structure, with fixed issuance dates. The Rutas 2 y 7 road project was the first-ever public-private partnership (PPP) in Paraguay.

Counsel Alberto Haito commented, "We are pleased to bring our infrastructure financing experience as well as our experience advising on the original hybrid financing of the Rutas 2 y 7 road project, to support our clients on this first-of-its-kind bond issuance."

Working with Haito in Washington, DC was partner Fabricio Longhin and special legal consultant Alejandro Leon. The team also included partner Jonathan Zonis and foreign law clerks Ximena López, Maria Fernanda Gadea Rivera and Jorge Bojalil in New York.

Clifford Chance advises on many landmark transactions in Latin America, including the original novel financing for the Rutas 2 and 7 toll road in Paraguay in 2019. The firm recently advised on the financing for the first line of the Bogota metro, Colombia's largest infrastructure project.