Patricio Montes and Michelle Inzunza

Larrain acts in $395m financing to Red Maule

Larrain y Asociados has acted as advisor to a syndicate of banks in the negotiation, structuring, documentation and closing of a financing granted to Sociedad Concesionaria Red Maule, for up to approximately US$395,806,410 (UF9,533,000).

The transaction closed on 8 November. Banco de Chile, which led the syndicate, as well as Banco del Estado de Chile, Banco Internacional and Banco Bice participated as lenders. DLA Piper Spain advised the creditors on the Support Agreement granted under Spanish law.

The resources will be used to finance the development, construction, maintenance of infrastructure and the acquisition, maintenance and replacement of medical equipment and clinical and non-clinical furniture, as well as the subsequent operation of three medium complexity health facilities: Hospital de Cauquenes, Hospital de Constitución and Hospital de Parral, which have a total built area of approximately 122 thousand square metres and will benefit a population of approximately 59 thousand people in Cauquenes, 57 thousand people in Constitución and 58 thousand people in Parral.

The project is promoted by Concesionaria China Road and Bridge Corporation (CRBC) and Puentes y Calzada Grupo de Empresas as shareholders of the concessionaire and by Puentes Infraestructuras Chile as main contractor.

The financing was extensively negotiated and structured under the Project Finance modality and includes tranches for the financing of the construction of the three health facilities of the concession, tranches for the financing of the Value Added Tax, and a tranche for the issuance of the guarantee bonds that must be delivered by the Concessionaire Company to the MOP as established in the Concession Contract.

Larrain’s team was led by partner Patricio Montes (pictured left) and associate Michelle Inzunza (pictured right), with the support of lawyers Valentina Ravera and Ana Maria Sepúlveda.

L Giselle Estrada