Client Requirement: APM as part of its commercial relationship with the Peruvian government, as concessionaire of the main port of Peru, was requested to issue a letter of credit in favor of the Peruvian Government, due to the fact that the previous letter of credit was subject to the Libor rate which is, now, a discontinued rate.
Our Participation: In this sense, we provided advisory in two matters: (i) the information regarding the discontinuation of the Libor rate and the possible alternatives to replace this rate and the reasons why this rate have been discontinued and (ii) recommendation and possible alternatives to propose to banks in order to not fall in default before the Peruvian Government.
Benefit for the Client: Avoid entering in default on the concession agreement.
