Hogan Lovells Acts on Behalf of the Republic of Ecuador in Complex Loan Agreement
16 June 2010
MIAMI, 16 June 2010 – Hogan Lovells US LLP has acted on behalf of the Republic of Ecuador in securing a US$1.7 billion loan from the Export-Import Bank of China (Chexim). This is the largest sovereign commercial lending of Ecuador and has been hailed a milestone in the relationship between the People's Republic of China and Ecuador.
Over the past several months, lawyers with Hogan Lovells created an innovative credit loan structure, which complies with the complex legislation and constitutional restrictions of Ecuador, while meeting equally complex borrowing requirements of the Chinese sovereign lender. Through this innovative lending structure it is expected the Republic of Ecuador will be able to have access to additional funds for the development of infrastructure projects.
As a result of the execution of the Chexim loan agreement, Ecuador will be able to finance the development of the Coca Codo Sinclair E.P.'s Hydroelectric Project, the largest infrastructure in the country's history, to be built by China's contractor Sinohydro Corporation. During 2008-2009 Hogan Lovells had led the negotiations between these two companies.
The Hogan Lovells team representing the Republic of Ecuador was led by Miami partner Miguel Zaldivar, Jr. and Washington, D.C. partner Robert Pender, with assistance from Washington, D.C. partner Keith Larson.