HERNÁNDEZ & CÍA ADVISED BANK OF CHINA LIMITED IN THE US$850 FINANCING GRANTED IN FAVOR OF CHAGLLA HOLDINGS LIMITED

Hernández & Cía (Peru) and Allen & Overy LLP (New York) advised Bank of China Limited, Luxembourg Branch, acting as Administrative Agent, as well as Bank of China Limited, Industrial and Commercial Bank of China Ltd. and BBVA Banco Continental, acting as lenders, in the USD 850,000,000 financing granted in favor Chaglla Holdings Limited, a subsidiary of the China Three Gorges Corporation that acted as Initial Borrower and Purchaser, for the refinancing of certain liabilities of Empresa de Generación Huallaga S.A., Peruvian company that ownes the Chaglla hydroelectric power generation plant operating in Peru. The financing was granted within the framework of the acquisition by Chaglla Holdings Limited of all shares issued by Empresa de Generación Huallaga S.A. Accordingly, once the acquisition of the shares became effective, Empresa de Generación Huallaga S.A. assumed the position of Borrower under the financing.

The financing was granted by means of a Credit Agreement governed by New York law and is guaranteed by an accounts security and control agreement and security agreement subject to New York law, as well as by the following collateral granted under Peruvian law: (i) a trust over the assets of Empresa de Generación Huallaga S.A., including the concessions under which the Chaglla plant operates; (ii) a trust over the cashflows of Empresa de Generación Huallaga S.A.; (iii) a pledge over accounts of Empresa de Generación Huallaga S.A.; and (iv) a pledge over the shares issued by Empresa de Generación Huallaga S.A.

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