Orionoil ER, a subsidiary of Orion Energy (Singapore), has successfully issued debt instruments on the Ecuadorian stock market for US$10 million. Authorities approved the transaction after several months of analysis due to many regulatory issues (including conditions for enforcing the bonds and guarantees).
This is the first upstream company debt issue transaction in Ecuador.
It represents a milestone in the Ecuadorian Oil & Gas industry by affording the possibility of financing working capital through debt instruments rather than credit facilities with financial institutions.
FERRERE assisted and advised Orionoil ER on all aspects of the transaction from a legal and regulatory standpoint, including the analysis of its assets and the corresponding legal provisions to determine a viable structure to grant guarantees. FERRERE also assisted Orion Energy (Singapore) to obtain and issue a parent company guarantee.