Citigroup has completed the first placement of Opic certificates of participation for Lima Airport Partners (LAP). Under the financing, LAP will have access to low-cost funding through Govco Inc, a multi-seller commercial paper vehicle dedicated to the purchase of US and UK government-guaranteed obligations. The borrower also has the option to access long-term funding in the US capital markets.

The transaction is the first time Citigroup and Opic have offered two funding options to a single borrower.

Citigroup acted as Placement Agent for the Opic notes, alternate lender to the purchaser of the notes (Govco), paying agent and liquidity facility provider.

The deal is part of the Lima Airport expansion and modernisation project and involves a US$89mn senior secured facility and a US$6.85mn liquidity facility.

There is a 15-month availability period plus a one-year grace period and a 13-year repayment period.

Sponsors of the airport project are Alterra Partners (Bechtel Enterprises and Singapore Changi Airport Enterprise) and Frankfurt Airport Enterprises.

LAP operates the Jorge Chavez International Airport under a 30-year concession. By pledging its rights under the concession as security for the loan, the company was able to raise 15-year financing on terms not otherwise available Peruvian borrowers in the international bank markets.

The financing package raised for LAP totals US$125mn, and will be used to finance the first phase of planned capital improvements at Jorge Chavez.

Citigroup offered LAP the following funding options: (i) floating rate funding through Govco during the construction period and (ii) conversion to a fixed rate in the capital markets or thorough a swap before the beginning of amortisation.