Peru’s Transmantaro engages Baker McKenzie for $400m green bond issue

Peruvian power company Corporación Transmantaro has issued $400 million in green international bonds at a 15-year term, at an interest rate of 4.7 per cent and with an excess demand of 5.7 times the amount tendered, with the financial backing of the government of the UK, and for which the company engaged Baker McKenzie as adviser and chief negotiator.

The green bond issue was Peru’s first, as the company takes strides in expanding its renewable energy generation capacity as part of its plan to achieve a 20 per cent reduction in carbon emissions by 2030.

 Transmantaro will use the funds to repay debt and expand corporate initiatives on green projects such as installing electricity transmission lines that will connect renewable energy sources to Peru’s main grid.

Baker McKenzie played a key role in the negotiations between local stakeholders and international financiers, as the global partners to Transmantaro during the transaction, with a team led by partners Alonso Miranda and Inés Vázquez.