Larrain y Asociados advises on $420m financing to Ruta de la Fruta

Larrain y Asociados has assisted a syndicate of banks in a US$420 million financing in favour of Sociedad Concesionaria Ruta de la Fruta S.A.

 Larrain y Asociados has advised a syndicate of banks led by Banco del Estado de Chile and Banco de Crédito e Inversiones in the negotiation, structuring, documentation and closing of a financing granted to Sociedad Concesionaria Ruta de la Fruta S.A., belonging to the Sacyr group for an approximate amount of $420,000,000 US dollars. The funds will be used to finance the construction, expansion and improvement of Route 66, known as Camino de la Fruta, with a length of 142 km.

This transaction was closed on 25 November, where DLA Piper Spain S.L. advised the lenders in connection with the Support Agreement granted under Spanish law.

The works are included in the public works concession contract called “Concesión Ruta 66 Camino de la Fruta” which was awarded by the Ministry of Public Works to Sacyr Concesiones Chile in 2019. The project seeks to improve the standard of the road linking Route 5 with the ports of San Antonio and Valparaíso, contributing to the generation of a fluid traffic for trucks travelling to these ports.

The financing was structured under the Project Finance modality and includes tranches for the financing of the construction of the concession works, a line of financing for the Value Added Tax, and a line for the issuance of guarantee bonds to be delivered by the Concessionaire Company to the Ministry of Public Works.

In addition, the financing contemplates the constitution of a security package including a pledge over the concession and a support contract to be granted under the laws of Spain.

The concessionaire was advised by its in-house lawyers Antonia Silva and José Manuel Mondaca.

DLA Piper’s team was led by partner Cesar Herrero, with support from associates Felipe López and Sara Espina.

Larrain y Asociados’ team consisted of partner Patricio Montes (pictured left) and associate Michelle Inzunza (pictured right).