Clifford Chance

Clifford Chance advises Petroperú on its US$2 Billion Inaugural International Bond Offering

Clifford Chance advised Peru's largest state-owned company, Petróleos del Perú - Petroperú S.A., as issuer, in its first-ever international bond offering. Petroperú raised nearly US$2 billion in net proceeds to finance a modernization project related to its Talara Refinery (Refinería de Talara). The project is being developed primarily by Técnicas Reunidas, a Madrid-based global leader in the design and construction of oil and gas facilities around the world.

The two-tranche international offering consisted of US$1 billion of Rule 144A/Regulation S notes due 2032 and US$1 billion of Rule 144A/Regulation S notes due 2047. The deal was priced on June 12, 2017 and closed on June 19, 2017. It is one of the largest corporate bond offerings in Latin America in recent years.

New York-based Capital Markets partners Alex Camacho and Per Chilstrom led a team that engaged with Peruvian regulators and local counsel as well as the Spanish ECA CESCE (Compañía Española de Seguros de Crédito a la Exportación) to ensure the successful completion of the transaction. The success of the company’s international offering is good news to Petroperú, which will need additional financing to complete its US$4.2 billion Talara Refinery project.

“It has been a pleasure working with Petroperú in its inaugural international bond offering, and we are grateful for the company’s support,” said Mr. Camacho.

“Throughout the process, the company’s top management promoted a collaborative relationship with our team and mobilized the organization towards the same objective,” added Mr. Chilstrom.

The Clifford Chance team also included associates Alejandro Espitia (based in Madrid) and Mariana Estévez (based in New York). Tax matters were handled by partner Avrohom Gelber and associate Caroline Phillips, and banking matters were handled by Project Finance associates Martin Menski, Alberto Haito and Diego Harman.

Clifford Chance has been recognized for decades as a preeminent law firm in Latin America. The Firm has led the way in developing successful, novel financing structures for a diverse client-base, and is constantly innovating its service offering, such as with a dedicated Latin America Capital Markets group specialized in sovereign, corporate and project bonds with both issuers and underwriters.