BLP advised J.P. Morgan, as initial purchaser, on the international offering and placement of US$375 million aggregate principal amount of 9.500% bonds due 2031 issued by the Municipality of the Distrito Central (AMDC).
According to the AMDC, with this placement Honduras’s capital became the first city in Central America to issue bonds in the international capital markets. The proceeds will be used mainly to restructure debt with local banks and to ensure the completion of the San José dam, a strategic project for the capital’s water supply.
BLP provided Honduran legal counsel throughout the issuance process. This included the analysis of the legal framework and applicable authorizations, legal due diligence and the review and negotiation of the Honduran law aspects of the transaction documents. BLP also delivered the Honduran legal opinion and supported J.P. Morgan through the closing and settlement of the transaction.
The transaction was led by partner José Miguel Álvarez, together with Ivis Alvarado and Alí Ordóñez.
