Clifford Chance advises on Energuate's A/B Bond Transaction in Guatemala

Global law firm Clifford Chance has advised International Finance Corporation (IFC), as lender of record, on a US$770 million term loan under its A/B Loan Program (the IFC loan) to provide financing to Distribuidora de Electricidad de Occidente, S.A. and Distribuidora de Electricidad de Oriente, S.A. (together, Energuate), which operate collectively as the largest power distribution company in Guatemala. This was the first Rule 144A/Regulation S A/B Bond transaction mobilized by IFC.

Clifford Chance also advised Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, and Santander US Capital Markets LLC, as joint bookrunners, in connection with the offering of US$670 million 6.350% senior notes due 2035 by a special purpose vehicle incorporated in the Cayman Islands. The net proceeds of the offering were used to acquire a participation interest in the IFC loan.

Energuate will use the proceeds to connect new users to its grid, improve and maintain its power network, support energy efficiency and emissions reduction and refinance existing debt.

The team advising IFC included partners Fabricio Longhin and Jonathan Zonis, associates Paula Ferreira and Agata Radajczyk, and law clerk Daniela Hernandez.

The team advising the joint bookrunners comprised partner Hugo Triaca, associates Joyce Moore and Cristian Ragucci, and foreign lawyer Juan Andres Bosch.

Additional support was provided by partner Avrohom Gelber and associate Kade Moural on tax matters, and partner Gareth Old and counsel Young Kim on financial regulation.

Clifford Chance advises on many similar transactions in the Latin American market, including on the largest ever B-bond and mobilization amount by IDB Invest in 2024 and the first multiple-tranche B-bond ever in 2023.