Latin America: ACS, GIP refinance Peruvian power line

22 August 2018 - 12:00 am UTC

An ACS-backed entity is lining up a bond worth some USD 170m through a private placement to refinance a transmission line in Peru, sources briefed told Inframation.

The notes are expected to carry a long-term tenor that almost extends to the end of the 30-year concession contract and would carry an interest rate in the mid-5% range.

Natixis is the sole bookrunner and placement agent on the deal. The French bank was advised by local legal firm Rodrigo, Elías & Medrano.

Natixis declined to comment and the sponsor did not respond to requests for comment in time for publication.

The transmission line project is owned by Bow Power, an investment vehicle created by Global Infrastructure Partners (GIP) and Spanish developer ACS Group, it is understood.

The 372km, 220kV Carhuaquero ‐ Cajamarca Norte ‐ Cáclic ‐ Moyobamba transmission line was developed by ACS subsidiary Grupo Cobra in Peru after it won a tender launched by the supervisory agency for investment in energy and mining (OSINERGMIN) in 2013.

Payment on the bond is backed by contractual payments with OSINERGMIN.

The private placement replaces an 18-year bank loan of roughly USD 150m signed in 2015. Natixis led that deal, with BBVA, Crédit Agricole, Intesa Sanpaolo and Banco Sabadell as participants.

The transmission line project, which began operating in September, had a total capital requirement of roughly USD 188m. It stretches from the Cajamarca Department to the region of Moyobamba in the San Martín Department in northern Peru.

The project also included the installation of 848 towers and the construction of the Cáclic and Moyobamba Nueva substations, as well as the upgrade of the Carhuaquero y Cajamarca Norte substations.

ACS