Rodrigo, Elías & Medrano Abogados Advises JP Morgan Securities
October, 2008 - Lima, Peru
The Peruvian Private Pension Funds (AFP for their Spanish acronym) have acquired, for the funds which each of them manages, US$10 million in investment instruments named "Securitized Bonds Peru - Option Arden 2009" . Placement took place on March 11 through a primary private offer.
This structured product was based on Sovereign Bonds issued by the Republic of Peru in the portfolio of the AFP, which were transferred to a trust, and included swaps and options over hedge funds and interest rates indexes to allow the issuance of investment instruments with a higher prospective yield not exclusively tied to the Sovereign Bonds. The investment instruments are secured by a securitization trust created for this deal.
This transaction required the Superintendence of Banking and Insurance, the AFP regulator, to rate the investment instruments as eligible for investment by the AFP.
Internacional de Títulos Sociedad Titulizadora (Intertitulos) acted as placement agent and trustee, Centura SAB acted as originator and arranger, and J.P. Morgan Securities acted as financial agent. Rodrigo, Elías & Medrano Abogados, advised J.P. Morgan Securities through senior partner Gino Sangalli and associates Paul Castritius and Fernando Hurtado de Mendoza.
