Garrigues advises Agrícola Chapí on $60m loan

Garrigues, through its Peru office, has assisted Agrícola Chapí and Agrícola Olmos in a $60 million financing

 Garrigues has advised Agrícola Chapí and Corporación Agrícola Olmos, as borrowers, as well as Milpeño as guarantor, in a $60,000,000 US dollars financing granted by Banco Santander Perú, Banco de Crédito del Perú – BCP, BD Capital and Coöperatieve Rabobank.

The deal was closed on 25 May and funded on 28 May 2021, where the funds will be used to refinance existing debt obligations and to finance expansions through the Borrowers’ CAPEX investments.

This is a long-term financing in the Peruvian agricultural industry, which was negotiated, closed and financed during the COVID-19 pandemic, farm worker strikes, sector labour reforms and political turmoil in Peru.

This transaction involved four different debt tranches and included a security trust over the material operating assets, a pledge over bank accounts and a corporate guarantee by Milpeño.

Agrícola Chapi and Corporación Agrícola Olmos are leading Peruvian agro-export companies, which for more than 2 decades have been dedicated to the cultivation of avocados, grapes and asparagus, among others.

Garrigues’ team consisted of partner Thomas Thorndike (pictured left), principal associate Jorge Fuentes (pictured top right) and senior associate Andrea Paiba. Miranda & Amado advised the lenders with a team led by partner José Miguel Puiggros (pictured bottom right), together with associates Álvaro del Valle and Pablo Cassinelli.