Milbank, Tweed, Hadley & McCloy LLP represented initial purchaser BofA Merrill Lynch in the $450 million bond offering by The Panama Canal Authority (ACP) to finance completion of a third bridge over the waterway.
The new span is a key part of the ongoing expansion and widening of the canal to meet the requirements of 21st century global shipping fleets, with the expansion set to be completed in April, 2016.
This is the first international bond offering by the ACP, the agency responsible for operation and management of the 77km canal.
Marcelo Mottesi, Head of Milbank’s Global Securities group, said: “We’re very pleased to be part of the ACP’s first international offering. More than 100 years after its completion, the canal remains a vital artery of the global economy.”
In addition to Mr Mottesi, the Milbank deal team included tax partner Andrew Walker, Global Securities associates Don Canavaggio, Elizabeth McNichol and tax associate Michael Goon.
The Panama Canal has recently run into problems with its Cocoli Lock on the Pacific side after a massive crack was discovered. Increased repair work has just been announced by the ACP, who will not allow any further construction to take place until the repairs have been completed.
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