Morgan & Morgan advised Electron Investment, S.A. in the offering of Corporate Bonds for an amount of up to US$235 million

August, 2015 - Panama, Panama

Morgan & Morgan represented Electron Investment, S.A., a Panamanian company that develops and operates hydroelectric power plants, in the public offering of Corporate Bonds with a value of up to US$235,000,000. The Corporate Bonds consist of three series, knowingly, the Series A Bonds with a value of up to US$187,000,000, the Series B Bonds with a value of up to US$30,000,000 and the Series C Bonds with a value of up to US$18,000,000. For purposes of their public offering, Electron Investment, S.A. registered the Corporate Bonds with the Superintendency of Capital Markets of Panama. The Series A Bonds were successfully offered through the Bolsa de Valores de Panamá, S.A. and acquired by a group of institutional investors led by Banco General. The proceeds of the sale of the Series A Bonds were used by Electron Investment, S.A. primarily to prepay the full amount of a syndicated loan granted by a group of international and local financial institutions that included IFC, IDB, DEG, CAF, Banco General and Banvivienda and guaranteed by a trust managed by Citibank as trustee.

The obligations of Electron Investment, S.A. under the Corporate Bonds are guaranteed by a collateral trust constituted under the laws of the Republic of Panama and whose trustee is BG Trust, Inc., an affiliate of Banco General that has been duly authorized by the Superintendency of Banks to carry out the trust business in Panama. The assets of the collateral trust consist primarily of the future cash flows that Electron Investment, S.A. is entitled to receive under power purchase agreements. The trustee has also been granted a pledge over the shares of the shareholders of Electron Investment, S.A. and mortgages over both real estate and movable assets property of Electron Investment, S.A.

Partners Francisco Arias and Ramon Varela, and associates Ricardo Arias and Ana Carolina Castillo, participated in this transaction on behalf of Morgan & Morgan.

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