Continuing its string of major financings in Latin America in 2012, law firm Milbank, Tweed, Hadley & McCloy LLP represented the government of Guatemala in an issuance of US$700 million in 10-year sovereign bonds – a substantial offering for a country making its first return to international debt markets since 2004.
New York- and São Paulo-based partner Andrew Jánszky, head of Milbank’s Latin America practice, led the financing. The firm has enjoyed a robust first half of the year in deals across the Americas, handling major debt, equity and project finance transactions in Brazil, Mexico, Chile, Argentina, Peru and Colombia.
Guatemala’s original planned placement of US$500 million was increased by 40% due to strong investor interest, which surpassed US$2 billion, an indication of the current confidence accorded to the Latin American economy, especially in comparison with Europe’s sovereign debt woes.
Mr. Jánszky said, “It’s a very healthy sign that a Central American country such as Guatemala, which has been out of the global credit markets for the better part of a decade, can return and attract such strong investor interest, particularly in light of the predicament facing sovereign issuers across the European Union. Our Latin America Practice Group has been hitting the paces in major financings throughout the hemisphere.”
In other recent assignments, Milbank represented:
- A group of international lenders providing US$378 million in financing a 237-mile transmission pipeline that will carry natural gas between the US and Mexico
- Lead underwriters in a US$146 million private placement deft offering by leading Argentine restaurant operator Arcos Dorados Holdings
- A group of major institutional lenders in providing US$225 million in financing for the development of Chile’s largest wind farm, El Arrayán
- A consortium of international banks providing nearly US$1.4 billion in loans to finance the purchase of two deepwater drilling ships to be leased by Brazil’s Petrobras
- Initial purchaser of US$300 million in senior notes issued by leading Peruvian beverage company Ajecorp B.V.
In addition to Mr. Jánszky, the Milbank team representing Guatemala included of counsel Frank Vivero and associate Elizabeth Rosado, as well as international attorney Santiago Noguerol.
