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News Feb 04, 2019

Longitudinal de la Sierra Norte Tramo 2 Toll Road Project in Peru

Shearman & Sterling represented a group of purchasers of private placement secured notes, including Metropolitan Life Insurance Company (MetLife), Allianz, BlackRock and Corporación Financiera de Desarrollo S.A. (Cofide), in connection with the refinancing of the construction of the Longitudinal de la Sierra Norte Tramo 2 toll road project in Peru. The notes are secured by the securitized payment rights due from the Government of Peru to the concessionaire for the project, including negotiation of a purchase agreement for the underlying true sale transaction.  The transaction is noteworthy because it constitutes the first securitization of PAMPI (pago anual por mantenimiento periódico inicial) rights in Peru.

Concesionaria Vial Sierra Norte S.A., through Longitudinal 2 PAMPI Funding BV, executed its private placement of $332.6 million notes in order to cancel an existing $200 million loan.  Concesionaria Vial Sierra Norte was formed by Sacyr Concesiones (35%), Sacyr Concesiones Perú (32%) and Constructora Málaga Hnos (33%). The company started operations in 2014 after winning a public-private partnership 25-year contract to build and operate the second stretch of the Longitudinal de la Sierra highway, running through La Libertad and Cajamarca departments.

The Shearman & Sterling team below was also supported by associate Brian Ham.

The Team