Milbank LLP represented Consorcio Transmantaro S.A. in an offering of $400 million aggregate principal amount of its 4.700% senior notes due 2034, engaged in the construction, operation, and maintenance of power transmission systems in Peru. CTM is controlled by Colombia’s Interconexion Electrica (ISA), Latin American largest power transmission company in terms of kilometers of transmission lines. The proceeds of the notes will be used to finance and refinance capital expenditures that qualify as “Eligible Green Projects” under the Green Bonds Principles published in 2018 by the International Capital Markets Association (ICMA).
The Milbank deal team was led by Global Capital Markets partner Carlos Albarracín, along with associates Andres Osornio and Gonzalo Guitart and international attorney Oscar Vazquez. The team also included Tax partner Andrew Walker and associate Jules Mugema.
Mr. Albarracín said: “We are pleased to have advised the issuer in this landmark transaction in Latin America that contributes to the development of power transmission infrastructure to support Peru’s growing market for electricity from renewable energy sources. This transaction is also unique in that CTM was able to obtain a tenor of 15 years for a non-amortizing bond that converts into amortizing during the last 4 years prior to maturity, which significantly mitigates refinancing risk.”
Milbank continues to have a strong presence in Peru and a deep client base in the country. Recent representations in Peru include: the Parque Eólico Marcona S.A.C. and Parque Eólico Tres Hermanas S.A. US private placement, I Squared acquisition of IC Power, the $450 million bond offering and subsequent $150 million re-tap by Inkia Energy Limited, Inkia acquisition financing and the $340 million inaugural bond offering by Fenix Power Perú S.A.
