Echecopar advises Credicorp on loan structuring

Estudio Echecopar, member firm of Baker McKenzie International, has advised Credicorp Capital Servicios Financieros on the structuring of a medium-term guaranteed loan granted by Banco de Crédito del Perú in favor of Ferrocarril Central Andino for a total amount of $60 million

The main purpose of this 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 favour 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.

The Transaction’s complexity derived from the need of adapting the existing guarantees to serve as collateral for this transaction. The effectiveness of guarantees was 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.

Echecopar’s team was lead by partner Marco Alarcón (pictured left), senior associate Luis Ernesto Marín (pictured top right) and associate Adrian Tovar (pictured bottom right).