BNP Paribas is sole lead on a cross-border local-currency denominated transaction that securitizes the rights to receive future payments from Peruvian state-owned water utility SEDAPAL, according to market sources. A BNP official did not return a request for comment.
The transaction is funding the construction of the Taboada wastewater plant by ACS Servicios, Comunicaciones y Energia, the deal’s originator through its local concessionaire, Planta de Tratamiento de Aguas Residuales Taboada.
The deal is split into three tranches: a PEN448 million ($162 million) piece due 2026; a PEN375 million chunk maturing in 2033; and a PEN100 million piece due 2033. Fitch Ratings has rated all three an expected ‘BBB.’
Three potential sources of payment back the deal: “flows received from SEDAPAL of all water bill customer payments through banks, the direct obligation of SEDAPAL in the event that collections are insufficient to cover debt service and ultimately an obligation by the Government of Peru (GOP) through the Ministry of Housing, Construction and Sanitation (MVCS) to provide for any debt service shortfalls,” Fitch said in its rating report.
The deal is structurally identical to the Huascocha transaction done last year (see “Peruvian Infrastructure Lays the Foundation for More ABS,” ASR 9/1/10).