The Bridge of the Americas is the first bridge at the Pacific end of the Panama Canal.
Our Work

Latham Advises on Inaugural Securitization of Milestone-Based Receivables for the Construction of the Fourth Bridge Over the Panama Canal

March 18, 2024
The 4(a)(2) debt private placement was issued under a multi-tranche structure allowing additional notes to be issued to finance the remainder of one of Panama’s critical new infrastructure projects.

A multidisciplinary team led by members of the firm’s Latin America Practice advised Mizuho and Banistmo, as structuring agents, and the note purchaser on Panama Infrastructure Receivable Purchaser PLC’s US$119 million offering of its Series 2024-1 Senior Secured Notes due 2026. Panama Infrastructure Receivable Purchaser PLC is an orphan special purpose vehicle incorporated under the laws of England and Wales that will use the net proceeds of its offering to purchase certain work progress receivables (informes de progreso de trabajo) from Consorcio Panamá Cuarto Puente and China Harbour Engineering Company Ltd.

The project is one of Panama’s critical new infrastructure projects and is expected to considerably enhance ground transportation connections between Panama City and the rest of the country, streamlining the daily movement of approximately 70,000 vehicles and benefitting approximately 1.7 million residents.

In addition to the financing, Latham advised on the bankability of certain amendments to the project contract and the regulatory framework for the issuance of the work progress receivables, the creation of the multi-tranche financing structure, tax structuring in connection with the use of an English special purpose vehicle, and various regulatory matters relating to the financing.

The Latham team was led by New York corporate partners Gianluca Bacchiocchi and Guido Liniado, with associates Giancarlo Reanda, Francisco Lascurain, and Andres Chester.* London partner Tom Cochran advised on English law matters. New York partner Elena Romanova and associate Jacob Nagelberg advised on US tax matters, and London partner Aaron Bradley and associate Nicole Lim advised on UK tax matters. Counsel Joel Cavanaugh advised on Investment Company Act matters. Counsel Laura Szarmach advised on ERISA matters. Counsel Andrew Galdes and associate Jessie Michelin advised on sanctions and export control matters.

*Not admitted to practice in New York. Admitted in Argentina.