Hogan Lovells Advises Republic of Ecuador in US$313 Million Financing for Hydroelectric Project
MIAMI, 15 April 2013 – Hogan Lovells advised the Republic of Ecuador in the negotiation of a US$313 million facility agreement that was executed on 10 April 2013 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 270 MW Minas-San Francisco hydroelectric generation project in Ecuador by contractor Harbin Electric International with an approximate cost of US$470 million.
With the closing of the Minas San Francisco facility agreement, Chexim will have provided more than US$2.8 Billion in funding to Ecuador since 2010 (including the Coca Codo Sinclair hydroelectric project, the Sopladora hydroelectric project, the Minas San Francisco hydroelectric project and the Simon Bolivar Highway extension project). Hogan Lovells has advised Ecuador on all of these projects.
The Hogan Lovells team was led by Miami partner Miguel Zaldivar, and included Beijing partners Jun Wei, Roy Zou and counsel Michael Zou, along with Miami associate Gaston Fernandez.
The closing of this transaction follows a number of recent significant deals in Latin American in which Hogan Lovells lawyers have been involved.
- In a deal that closed on 22 February 2013, Hogan Lovells advised the Republic of Ecuador in the execution of a US$85 million concessional loan agreement, granted by the Export-Import Bank of China, which will be used to finance the extension of the Simon Bolivar Highway, and will connect the country’s capital city of Quito to the newly-opened Mariscal Sucre International Airport.
- In a deal that closed on 20 December 2012, Hogan Lovells represented of Tiendas Efe, the Peruvian household appliance chain, in acquiring a 75 percent interest in rival Total Artefactos, the company that operates under the popular La Curacao brand. Tiendas Efe paid US$150 million for the acquisition over the Lima Stock Exchange. The deal was recognized with the “Private Equity Deal of the Year” award by Latin Lawyer.
- In a transaction that closed on 20 December 2012, Hogan Lovells advised the Republic of Ecuador on an eight-year, dual-currency US$/RMB loan from the China Development Bank (CDB) for approximately US$2 billion. In connection with the loan agreement, PetroEcuador entered into sales and purchase contracts of crude oil with PetroChina and Unipec (a subsidiary of Sinopec). This was the third line of credit from CDB to Ecuador since 2010, for an approximate of US$5 billion.
- In a financing project that closed 4 December 2012, Hogan Lovells advised the Republic of Ecuador in the execution of a US$127 million loan, granted by the Ministry of Foreign Trade of France, which will be used to finance the construction of a new 10.8 km-long tram line in the city of Cuenca that will be used by between 110,000 to 120,000 people a day.
- In a deal that closed on 28 November 2012, Hogan Lovells also advised the Republic of Ecuador and E.P.M. Metro de Quito in the execution of an approximately US$260 million loan, granted by the European Investment Bank, which will be used to finance the first metro system for the country’s capital city of Quito.
- In a transaction that represents the largest bond to date by a private sector issuer from Central America, Hogan Lovells advised Banco Industrial, S.A., Guatemala’s largest bank, in a US$500 million bond issuance that closed on 1 November 2012.
- In a securitization that closed on 3 October 2012, Hogan Lovells represented underwriters HSBC Securities (USA) and Global Bank (with a separate team advising the issuer trustee HSBC Panama) in a US$600 million notes issuance to enable the government of Panama to reacquire the Corredor Norte toll road concession.
- In a deal that was finalized on 1 October 2012, Hogan Lovells helped Millicom International Cellular S.A. acquire Cablevisión Paraguay for US$172 million, representing the largest telecommunications deal ever in Paraguay.
- Hogan Lovells has advised Petróleos de Venezuela S.A. (PDVSA), the Venezuelan state oil company, on a number of transactions, including the negotiation and execution of a series of Engineering, Procurement, and Construction contracts with a total value of US$3 billion, and in obtaining US$1 billion in financing, announced on 31 August 2012, to expand the Puerto la Cruz refinery. Hogan Lovells has also advised PDVSA on a US$3 billion bond issuance announced by the company on 11 May 2012.