LatAm’s first greenfield project bond explained

Author: Zoe Thomas | Published: 4 Feb 2014
  • Peru’s Eten cold reserve power plant has issued the first international greenfield project bond in Latin America;
  • The offering required investors to take on full construction and operating risk for the project;
  • A partial credit guarantee helped the project receive an investment grade rating. It was the first time such a guarantee was used in an international offering from Latin America.

Peru’s Eten cold reserve power plant has issued the first international greenfield project bond in Latin America.

The project is a concession to build and run and cold reserve power plant in the northwest of Peru. It will be run as a backup generator, producing electricity in the country only in emergency situations.

The transaction comes as both the local Peruvian and Latin American...