Consortium Centro América Abogados – El Salvador Advises the Structuring of the Largest Securitization in the Public Sector
May, 2013 - San Salvador, El Salvador
The offices of Consortium Centro America Abogados in El Salvador advised the Fondo de Conservación Vial (FOVIAL) an autonomous government agency in charge of the construction and maintenance of highways, streets and rural roads, in the structuring of a securitization for US$100,000,000 under the Law of Securitization of Assets. The securitization is divided in two tranches of US$50,000,000 each and the funds will be used by FOVIAL for the development of the infrastructure of highways.
This operation represents the largest securitization that has occurred in El Salvador up to this date, guaranteed by future flows of the tax applicable to the import of hydrocarbons and petroleum by gasoline and diesel distribution companies. The securitization was rated AA by Fitch Ratings.
The contracts that support the securitization were executed by all the parties on May 14, 2013. The negotiation of the notes corresponding to the first tranche in the Salvadoran Stock Exchange is set to occur in the last week of May, 2013.
Consortium was retained by FOVIAL as its legal advisor throughout the process, working jointly with Ricorp Titularizadora, S.A. (securitization company) and other financial advisors.
The transactions was handled by the team that manages the banking and financial law practice of the firm, partners Aquiles A. Delgado and Oscar Samour and Senior Associate Salvador Choussy.
Oscar Samour (Partner) commented: “This is the largest securitization in the history of the securities market of El Salvador. This process will be of great benefit to our country, not only for the projects that will be developed by FOVIAL with the funds raised from the securitization, but for the impulse that a transaction like this will give to El Salvador’s securities market which had little development before the Law of Securitization of Assets came into force in early 2008”.
