Estudio Echecopar, member firm of Baker & McKenzie International, advised Credicorp Capital Servicios Financieros in the structuring of a medium-term guaranteed loan granted by Banco de Crédito del Perú in favor of Ferrocarril Central Andino S.A. for a total amount of USD 60'000,000.00, with the participation of Ferrovías Central Andina S.A. as guarantor. The main purpose of the loan was to refinance existing debt with the lender and the remainder for other general corporate uses.

The advice included the preparation of all the transaction documents, including those corresponding to the specific guarantees that back the loan. For this purpose, amendments to the existing guarantees linked to a previous operation where Estudio Echecopar advised Credicorp Capital Servicios Financieros in the granting by Banco de Crédito del Perú of two medium-term financings in favor of Ferrocarril Central Andino S.A. and Ferrovías Central Andina S.A, respectively, were prepared and executed. In this sense, the loan was guaranteed by a pledge over assets, a trust in administration and guarantee, and a joint and several guarantee granted by Ferrovías Central Andina S.A.

Partner Marco Alarcón, senior associate Luis Ernesto Marín and associate Adrian Tovar advised Credicorp Capital Servicios Financieros throughout the process. Credicorp Capital Servicios Financieros also had legal advice from its internal legal team.

The Transaction's complexity derived from the need of adapting the existing guarantees to serve as collateral for this transaction. The effectiveness of guarantees were conditioned and entered into effect after Banco de Crédito del Perú executed the respective unilateral declarations on March 18, 2021 stating that prior loan granted to Ferrocarril Central Andino S.A. was paid.

Estudio Echecopar is a leading Firm in providing advice on national and international financing operations. We have collaborated in most of the important financial transactions carried out in the last few years in Peru. Thus, we advise banking syndicates, export promotion agencies, multilateral financial agencies, as well as local borrowing companies on their financing transactions.