Energuate Completes US$670 Million Debt Offering
The Firm represented Distribuidora de Electricidad de Occidente S.A. and Distribuidora de Electricidad de Oriente S.A., Guatemalan companies which are collectively known as Energuate (“Energuate”) and are subsidiaries of Threelands Energy Ltd S.à r.l., in connection with an offering of US$670 million of 6.350% Senior Notes due 2035 issued by Walkers Fiduciary Limited, acting solely in its capacity as trustee of a Cayman Islands trust established by Energuate. The Firm also represented Energuate in connection with the underlying loan agreement between Energuate and International Finance Corporation, pursuant to which Energuate borrowed an aggregate of US$770 million in two tranches, and the purchase by the Cayman Islands trust of a 100% participation in one of the tranches thereof.
Energuate is one of the two large energy distributors in Guatemala and the largest distribution company in Central America measured by population served. As of June 30, 2025, Energuate provided services to approximately 2.5 million regulated customers in Guatemala, which represent approximately 59% of Guatemala’s population. Energuate holds governmental authorizations to provide energy distribution services within its service area until 2048.
The Simpson Thacher team for these transactions included, among others, Juan Francisco Méndez, Kirsten L. Davis, Alejandro de Ramón-Laca, Isaac Cattan and Pablo Torrealba (Capital Markets); and Jonathan Cantor and Sean Largey (Tax).