Hogan Lovells Advises Republic of Ecuador in its US$509 Million Loan from Chexim
19 November 2014
MIAMI, FL, 19 November 2014 – Hogan Lovells advised the Republic of Ecuador in the negotiation of a US$509 million facility agreement that was executed by the Export-Import Bank of China (Chexim) and the Ministry of Finance of Ecuador. Under the agreement, Chexim granted a loan to be used for the construction of the 500Kv transmission lines, which are strategically required to connect the three mega hydroelectric projects currently being built in Ecuador by Chinese construction companies.
In addition, Hogan Lovells advised on the engineering, procurement, and construction contracts that have a value of approximately US$600 million. Harbin Electric International Company Limited, a major Chinese construction and power equipment company, is the contractor for the project.
With the closing of the agreement, Chexim will have provided more than US$2.8 billion in funding to Ecuador since 2010, including the three mega hydroelectric projects to be connected to the grid: Coca Codo Sinclair, Sopladora, and Minas San Francisco, as well as the Simon Bolivar Highway extension project. Hogan Lovells has advised Ecuador on all of these projects.
Miami partner Miguel Zaldivar led the Hogan Lovells team with assistance from Miami associate Gaston Fernandez. William Vasconez of the Ecuador Ministry of Finance provided local counsel.
The closing of this transaction follows a number of recent significant deals in Latin America in which Hogan Lovells lawyers have been involved.
In November 2014, Hogan Lovells BSTL advised Parsons Transportation Group in the award of a service contract for the construction of the new Mexico City Airport.
In October 2014, Hogan Lovells advised the Republic of Ecuador in its US$100 million seven year term facility agreement with Credit Suisse AG, London Branch. The deal will finance several infrastructure projects, including roads and university campuses.
In September 2014, Hogan Lovells represented Petroecuador and the Republic of Ecuador in a multi-faceted transaction with Noble Americas Corp., the U.S. subsidiary of Hong Kong-based global supply chain manager Noble Group. The transaction included a groundbreaking US$1 billion five year term loan facility of freely disbursable funds extended to Petroecuador by Noble Americas Corp. and an agreement through which Noble Americas Corp. will supply Petroecuador with 35 to 50 percent of Ecuador’s diesel and naphtha purchasing requirements over the next five years.
In June 2014, Hogan Lovells advised the Republic of Ecuador in a US$2 billion issuance, which marked its return to the international sovereign bond markets.
Also in June 2014, Hogan Lovells advised BB Securities and BNP Paribas in the US$2 billion issuance by Rio Oil Finance Trust of future oil royalties formerly owned by RioPrevidência, the pension fund of the State of Rio de Janeiro, and the establishment of the master trust program related thereto.
In March 2014, Hogan Lovells advised the Republic of Ecuador in the negotiation of a multimillion-dollar facility agreement by the Japan Bank for International Cooperation (JBIC) and the Ministry of Finance of Ecuador.