Arias, Fábrega & Fábrega advised Banco General SA as arranger in an amendment of an existing US$130 million public bond issuance made by Hydro Caisán SA, and a simultaneous new public bond offering made by the same issuer for US$90 million.

Hydro Caisán, a subsidiary of Panama Power Holdings, operates the hydroelectric plant El Alto in the Chiriqui Province of the Republic of Panama. The proceeds of the new offering will be used to redeem the current bond issuances of three power generators – Generadora Alto Valle, Generadora Pedregalito, and Generadora Rio Chico, all affiliates of the issuer that owns hydroelectric projects – and for general corporate purposes.

This is one of the most complex bond redemptions done in Panama since the new bondholders and the initial bondholders will share guarantees (basically the revenues and assets of four different hydroelectric projects) which presents inter-creditor issues and the amendment of the initial offering and the new offering need to be coordinated to liquidate on the same day together with the early redemption of the issuances of the aforementioned generators.