White & Case Advises Peru's Largest Economic Group in the Development and Project Financing of Peru's Second Largest Port | White & Case LLP International Law Firm, Global Law Practice
White & Case Advises Peru's Largest Economic Group in the Development and Project Financing of Peru's Second Largest Port

White & Case Advises Peru's Largest Economic Group in the Development and Project Financing of Peru's Second Largest Port

Global law firm White & Case LLP represented Terminal Internacional del Sur S.A., as borrower, and Santa Sofia Puertos S.A., as sponsor, in the US$280 million project development and financing for the expansion of the Matarani Port in the Islay district of Arequipa, Peru.

"The expansion is expected to more than double the port’s handling capacity through the development, construction and operation of dedicated mining concentrate storage, shipping and handling facilities,” said White & Case partner Carlos Viana, who led the Firm’s team of lawyers working on the project financing. "The new facilities will be supported by ship-or-pay agreements with major mining companies in Peru; once completed, they will make the main mineral port in the country and increase the volume from 3.5 million MT to more than 7.0 million MT per year in 2017."

In addition to Viana, the White & Case team that advised on the capital raise included partners Sean Goldstein, Ray Simon and Ian Cuillerier, counsel Tallat Hussain and associates Thomas Pate, Nicolas Endre, Lauran Guijarro, Jodi Singer and Kevin O’Neill.

Enrique Tarazona Soria, CFO of Santa Sofia Puertos S.A., said that "One of the critical issues in the structuring of this project was that it took place during a period in which one of the principal shippers transferred ownership twice." However, he continued that Santa Sofia Puertos S.A. was “glad to have obtained a competitive price and term” in the financing.

The 13-year tenor financing was provided by a group of top-tier international commercial banks (SMBC, Mizuho, CACIB and Natixis). Sumitomo Mitsui Banking Corporation acted as financial advisor to Tisur and Santa Sofia.

Terminal Internacional del Sur S.A. and Santa Sofia Puertos S.A. are members of the Romero Group, which is the second largest economic conglomerate in Peru, with consolidated annual sales of over US$5.8 billion. The Romero Group owns competitive companies operating across a wide range of sectors, including financial services, food and mass consumption, oil & gas, ports and maritime logistics, manufacturing and telecommunications, among others. For the Romero Group, the Matarani port expansion project is a way to increase participation in the port industry and capture an attractive return from long-term agreements with large mines and commodity exporters in Peru.

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