Ergon Perú S.A.C.’s $143 Million Loan


Pillsbury Winthrop Shaw Pittman, Estudio Echecopar (Baker & McKenzie), Paul Hastings and Garrigues advised on the transaction

Ergon Perù, a company of the Italian Tozzi Green group, has obtained financing of USD 142 million for a period of 13 years from the Peruvian development bank Cofide (Corporación Financiera de Desarrollo S.A.) and from Sumitomo Mitsui Banking Corporation (SMBC), for its rural electrification project in Peru. The loan was issued on 28th March following the signing of the loan agreement by Tozzi Green on 16th February.

Cofide and SMBC have each underwritten 50% of the line of credit. SMBC acted as arranger of the agreement. The loan is guaranteed by the project cash flows from a social compensation fund. This fund is fed by the payment of a tariff by customers of the Peruvian utilities and not by the end users.

Ergon Perù will install a minimum of 173,000 solar kits consisting of solar panels, batteries and light bulbs in three off-grid areas in south, central and northern Peru, at a total cost of about USD 181 million. The company will then manage the project – to be completed by mid-2019 – for 15 years.

Ergon Perù was awarded the investment contract in 2015 following an invitation to tender issued by the Supervisory Agency for Investment in Energy and Mining (OSINERGMIN).

Pillsbury Winthrop Shaw Pittman advised Ergon Perú, Tozzi Green and Tozzi Holding S.R.L. with a team including Jonathan B. Whitney (Picture), Nancy A. Fischer, Matthew Rabinowitz, Joseph Galvin, Nicolai J. Sarad and Fernando Marin Rodriguez.

Estudio Echecopar (Baker & McKenzie) adivsed Ergon Perú, Tozzi Green and Tozzi Holding S.R.L. with Juan Carlos de los Heros, Inés Vázquez, Luis Ernesto Marín and Katherine Zapata.

Paul Hastings advised Sumitomo Mitsui Banking Corporation (SMBC) and Corporación Financiera de Desarollo S.A. (Cofide) with a team including Robert Kartheiser, Lorenzo Parola, Marc-Alexandre Courtejoie, Thomas Sines, Bruna Rey and Federica Piemonte.

In Perù, Garrigues advised Sumitomo Mitsui Banking Corporation (SMBC) and Corporación Financiera de Desarollo S.A. (Cofide) with Sergio Amiel, Johanna Holz and María Fernanda Tamayo.

Involved fees earner: Jonathan Whitney – Pillsbury Winthrop Shaw Pittman LLP; Nancy Fischer – Pillsbury Winthrop Shaw Pittman LLP; Matthew Rabinowitz – Pillsbury Winthrop Shaw Pittman LLP; Joseph Galvin – Pillsbury Winthrop Shaw Pittman LLP; Nicolai Sarad – Pillsbury Winthrop Shaw Pittman LLP; Sergio Amiel – Garrigues; Johanna Holz – Garrigues; Robert Kartheiser – Paul Hastings; Marc-Alexandre Courtejoie – Paul Hastings; Federica Piemonte – Paul Hastings; Lorenzo Parola – Paul Hastings; Thomas Sines – Paul Hastings; Juan Carlos de los Heros – Baker McKenzie; Luis Ernesto Marín – Baker McKenzie; Ines Vazquez – Baker McKenzie; Katherine Zapata – Baker McKenzie;

Law Firms: Pillsbury Winthrop Shaw Pittman LLP; Garrigues; Paul Hastings; Baker McKenzie;

Clients: Sumitomo Mitsui Banking Corporation; Corporación Financiera de Desarrollo S.A.; Tozzi Green S.p.A.; Ergon Perú S.A.C.;

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Author: Ambrogio Visconti