Estudio Echecopar, member firm of Baker & McKenzie International, advised Credicorp Capital Servicios Financieros, as structurer, regarding 2 mid-term financings granted by Banco de Crédito del Perú ("BCP") to Ferrocarril Central Andino S.A. ("FCCA") and Ferrovías Central Andina S.A. ("FVCA").
The first financing, granted to FCCA, includes a mid-term loan of USD 41,500,000, distributed in 2 stages: (i) the first, of USD 24,500,000 and, (ii) the second, of USD 17,000,000. The financing was allocated to the cancellation of the standing financial debt of FCCA - including a loan granted by the BCP in 2013 - and to other general corporate uses. This first financing is supported by a cash flow trust - which was entirely modified to sustain the obligations arising from the new loan - and by a security agreement for personal property over rolling stock.
The second financing, granted to FVCA, had an amount of USD 11,000,000 and was allocated to the cancellation of a loan granted by the BCP to FVCA in 2013. This second financing is supported by a trust about the assignment of rights of Ferrocarril del Centro for which OSITRAN and the Ministry of Transport and Communications had to give their consent.
In addition to this, both financings are warranted by joint and several liabilities granted by FCCA and FVCA.
A part of the funds obtained from the financings was allocated to the cancellation of the financial debt of FCCA and FVCA that aroused from a loan acquired in 2014, where Estudio Echecopar advised the structurer and the lender.
Our partner Marco Alarcón, our principal associate Luis Ernesto Marín and our associate Fernanda Valdivia advised Credicorp Capital Servicios Financieros throughout the process. Credicorp Capital Servicios Financieros also received legal counsel from their internal legal team.
FVCA was granted the Peruvian state's licensing for a period of 30 years to carry out the management, rehabilitation, maintenance and exploitation of Ferrocarril del Centro, which is a railway line that goes from Callao to Huancayo in the central Andean region of Peru. This railway is known for reaching the highest height above sea level (4,835 m.a.s.l.) in South America and it is the second at a global level, after Ferrocarril Qinghai-Tíbet.
Estudio Echecopar is a law firm leader in legal advice in national and international financing transactions. Our team has participated in most of the important financial operations that have taken place over the last years in Peru, advising bank unions, exports promotion agencies and multilateral financial institutions, as well as local borrowers in their financing operations.
