DLA Piper announced it has advised Japan Bank for International Cooperation (“JBIC”), Nippon Export and Investment Insurance (“NEXI”) and commercial bank lenders on a $1.5 billion advance pay structured financing facility to Venezuela’s national oil company, Petroleos de Venezuela S.A. (“PDVSA”) which was signed in Caracas on June 28.

The financing relates to two projects in Venezuela, the El Palito Refinery and Puerto La Cruz Refinery projects and will be secured by revenues from long term offtake agreements for oil and oil products by Japanese trading houses led by ITOCHU Corporation and Mitsubishi Corporation. 

DLA Piper acted as the Lenders’ Counsel representing JBIC and a group of commercial banks led by The Bank of Tokyo-Mitsubishi, UFJ and Mizuho Corporate Bank and was also counsel to NEXI, Japan’s government-owned financial insurance institution. 

Commenting on the transaction, lead partner David Robbins from the firm’s Tokyo office said “This transaction is a significant step in the diversification of Japan’s energy resources and is especially important now as Japan faces new challenges to power generation after the recent tragic events.” 

DLA Piper’s Tokyo team was led by partner David Robbins and includes associates Youju Min, Jonathan Brooks and Makiko Kawamura. They were assisted by associates Greg Chludzinski and Cody Dydek from the firm’s New York office. 

The trading houses were represented by Milbank, Tweed, Hadley & McCloy and PDVSA was represented by Arnold & Porter. Venezuelan counsel for the senior lenders was Caracas based D’Empaire Reyna Abogados, led by partner Carlos Omana while Rodriguez & Mendoza represented the trading houses.