Paraguay’s US$657.6 Million “Rutas 2 and 7” Toll Road Project Hybrid Financing

Clifford Chance advised Goldman Sachs and the Inter-American Investment Corporation on the up to US$657.6 million hybrid financing for the design, rehabilitation, construction, operation and maintenance of the “Rutas 2 and 7” toll road project in Paraguay, which is owned by Sacyr Concesiones and Ocho A.

This project, the first-ever public-private partnership in Paraguay, adds to the Firm’s unrivalled experience in Paraguayan infrastructure financing. Earlier this year, the team worked on the landmark financing of the “Corredor Bioceanico” toll road, the first international project bond in Paraguay.

The financing of Rutas 2 and 7 involves a complex multi-tranche structure that combines a securitization of government receivables with a letter of credit facility and a project financing. The US$457.6 million securitization was structured by Goldman Sachs and implemented through a 144A/Reg S bond offering, with Goldman Sachs acting as global coordinator and joint bookrunner and Itau BBA acting as joint bookrunner. The combined US$200 million project financing and letter of credit facility was arranged by IDB Invest and included the International Development Bank.

Rutas 2 and 7 is the first project finance transaction for which IDB Invest and IDB have provided a letter of credit facility.

Clifford Chance’s cross-practice and bilingual team worked across the Firm’s offices in New York, Washington, DC and Madrid.

Guido Liniado (Picture) and Gianluca Bacchiocchi led the New York-based team representing Goldman Sachs, assisted by associates Mariana Estévez, Andrés Berry, Nicolas Ocampo and Edwin Ramirez-Homs and foreign law clerk Alvaro Rojas. Partner Avrohom Gelber and associate Dan Borchert advised on tax matters; counsel Paul Koppel and associate Thomas Koh advised on ERISA; and counsel Ashwini Habbu provided regulatory advice.

Partner Fabricio Longhin led the DC-based team representing IDB Invest, working with Haito and associates Pablo Fekete and Julian Hurtado Vallejo.

The Firm’s team in Madrid, led by partner Jose Guardo and including associate Marta Ruiz, handled the project development and construction matters.

Involved fees earner: Gianluca Bacchiocchi – Clifford Chance; Andrés Berry – Clifford Chance; Dan Borchert – Clifford Chance; Mariana Estévez – Clifford Chance; Pablo Fekete – Clifford Chance; Avrohom Gelber – Clifford Chance; José Guardo – Clifford Chance; Ashwini Habbu – Clifford Chance; Alberto Haito – Clifford Chance; Julian Hurtado Vallejo – Clifford Chance; Paul Koppel – Clifford Chance; Guido Liniado – Clifford Chance; Fabricio Longhin – Clifford Chance; Nicolas Ocampo – Clifford Chance; Edwin Ramirez-Homs – Clifford Chance; Marta Ruíz – Clifford Chance;

Law Firms: Clifford Chance;

Clients: Goldman Sachs; Inter-American Investment Corporation;

Author: Ambrogio Visconti