Hernández & Cía. Abogados has acted as legal counsel of Banco de Crédito del Perú (BCP) and Corporación Financiera de Desarrollo (COFIDE), in order to finance Empresa Eléctrica Agua Azul (Aluz Clean Energy group) to obtain a loan worth US$30 million to finance the construction of the 20-megawatt Potrero hydroelectric dam in Peru’s northern Cajamarca region.
The financing is structured as a medium-term loan and guaranteed by a security interest on the project’s concession and assets. Aluz Clean Energy will use the funds to construct the dam and erect a 20 MV transmission line connecting it with the Aguas Calientes Power Substation.
The security package consisted in mortgage agreements over the concessions, a trust over assets, a share pledge agreement and a trust over the cash flows generated by the company’s energy sales.