BKM | BERKEMEYER provided legal advice to Rutas del Este S.A. and the sponsors Sacyr Concesiones S.L. (from Spain) and Ocho A S.A. (Paraguay), in the successful financial restructuring process of the PY02 Route duplication and expansion project, execution of which has started in 2019 and currently having 65% of the route in operation. The project is a PPP with a concession term of 30 years and a USD 550 million investment.
Refinancing of the bank loan of USD 176,000,000 granted by IDB Invest within the framework of the financial year 2019, took place through a private placement of bonds under New York regulations (rule 4 (a) (2)) together with the Inter-American Development Bank (IDB Invest) for USD 218,500,000 over 15 years, which is added to the financing obtained in 2019 through a bond issue under rule 144A / Reg S for USD 240,000,000, structured by Goldman Sachs. With this new transaction, financing was obtained for certain sections of the project.
It should be noted that this is the only project being executed under the public-private partnership modality in Paraguay within the framework of Law No. 5102/2013, and that these works are highly strategic for Paraguay, given that the Route PY02 integrates the axis that connects the capital city, Asunción, with the eastern region of the country, a commercially competitive area that has borders with Brazil.
The BKM | BERKEMEYER team who advised on this transaction was comprised by Martin Carlevaro (Partner), Manuel Arias (Partner), Alvaro Rojas (Associate), Adriana Ocampos (Associate).
In-house Lawyer for Sacyr and Rutas del Este: Sofía Suarez
In-house Lawyer for Ocho A: Juan Guiñazu
