The first Peruvian public health infrastructure project to
be financed in the capital markets received an investment grade
rating last month, in absence of government guarantees.
The class A zero-coupon notes due 2029 will raise $230
million and were assigned a BBB- rating by
The rating was due largely to a complex offering structure
that removed construction risk. The investors right to
receive payment on the bonds underlying assets - project
payments known as RPICAOs made by government health
organisation Seguro Social
de Salud (EsSalud) - is unconditional and irrevocable, even
if the project does not complete.
The funds will be used to construct two hospitals and two
medical distribution centers in Lima.
This deal is a real milestone in the history of
Peruvian public health infrastructure, not only because these
projects are the first EsSalud infrastructure...