IFLR 1000
The Guide to the World's Leading Financial Law Firms

	Garrigues Uría Menéndez
	Clifford Chance Cuatrecasas Gonçalves Pereira
	Allen & Overy DLA Piper Gómez-Acebo & Pombo
	Ashurst CMS Albiñana & Suárez de Lezo Freshfields Bruckhaus Deringer Herbert Smith Hogan Lovells KPMG Abogados Linklaters Ramón & Cajal Watson Farley & Williams

In general, the story in project finance in Spain has been much the same as the previous year. The keenest area of activity is renewable energy, but the sector continues to be an area of much uncertainty due to the continuing discussions over the country's feed-in tariffs. "We've seen an initial slow down in project finance due to regulatory changes, a certain turmoil in relation to renewable energy," says one partner.

The main change relates to the guaranteed rate investors will get for the power produced from their projects. "It has limited the number of hours of production, and second it has further limited for the first three years – as from the date of establishment of the Royal Decree Law – the set number of hours," explains another partner. As a result firms are finding themselves providing a lot of advice to clients trying to familiarise themselves with the new regime. "We have done a lot of opinions and reports related to the activities of the new regulation from the government, this has very much affected the financing of the projects," says another projects lawyer. This uncertainty it is feared will reduce future investment in the sector. "At the end, the regulation will need to be much clearer, otherwise the lenders are going to be reluctant to put money in," says another partner.

Outside of energy, infrastructure projects remain few and far between and are often small regional initiatives. "We have seen very few really big projects in the last year, they're more small-and-medium sized projects - roads, railways, hospital, most of them sponsored by the regional government," explains one partner. "Spain is suffering a crisis right now that means the federal government here putting less money into big projects, so my expectation is that probably next year, we are not going to see many big projects," says another.

This reluctance has led to investors seeking alternative forms of financing from a variety of different sources in order to obtain the capital needed. "The general market trends, well, it is more complex now, the banks are making it more difficult because they are not financing projects, so that means the ratio has decreased," says one practitioner. "The sort of warrant that the companies need to win in the project is higher, the reality is very few projects are pure project finance projects."

Project bonds may well be one form, which may be explored. Although they are still finding their feet in Europe, Spain would seem an ideal testing ground.

Garrigues no doubt has a strong market presence in project finance and peers recognise the firm's focus and track record. However the practice suffered a blow in September 2011 when lead partner José Guardo left to join Clifford Chance.... [more]

Garrigues no doubt has a strong market presence in project finance and peers recognise the firm's focus and track record. However the practice suffered a blow in September 2011 when lead partner José Guardo left to join Clifford Chance. The market will wait to see how the firm reacts.

The team's main focus is advising lenders, and this is be backed by its list of mandates. The biggest deal at the firm last year came in the energy infrastructure area where the team, including Gaspar Atienza, Jon Goirigolzarri and Julio Robledo, advised the lenders on the financing of an underground gas storage system on the northern coast of Castellon, Spain. The transaction was valued at €1.7 billion.

Another highlight saw the recently departed Guardo work together with Aida González acting for a group of lenders, including Sumitomo Mitsui Banking Corporation and Mizuho Corporate Bank Netherland in relation to the financing of two 50MW thermoelectric solar plants in Spain. The deal involved two senior credit facility agreements with one valued at €177.6 million and the other €175 million.

Guardo again advised another Spanish thermoelectric solar plant mandate when he led the team acting for the lenders on the €212 million financing of a 50MW plant.

At the beginning of 2011, a group of banks again called in the team to advise on the €16 million financing of a public concession for the construction and build-up of a hospital in Madrid.

[hide]

Uría Menéndez retains its place this year, with the market in agreement that the firm is still a market leader. "Garrigues and Uría are fine, they're everywhere.... [more]

Uría Menéndez retains its place this year, with the market in agreement that the firm is still a market leader. "Garrigues and Uría are fine, they're everywhere. [They're] perfectly fine," says one peer.

The firm has advised both the borrowers and lenders on project finance transactions last year. One substantial mandate saw Daniel Ripley and Juan Martín Perrotto act for the borrower on the financing of the construction of part of the Barcelona Underground Line 9 valued at €1 billion.

On the lender side, the firm was involved in advising two notable deals. One saw Sebastián Sáenz de Santa María lead the team advising a club of banks, including BBVA and BNP Paribas alike, on the Spanish law aspect of the financing for the construction and launch of a Hispasat satellite, for an amount of €178 million. The other saw De Santa María again involved in advising a lending syndicate from the Spanish legal perspective on the financing of the two hospitals' construction in Chile.

[hide]

Clifford Chance pulled off quite a coup in September 2011 when it hired José Guardo from Garrigues. Guardo, who is listed as a leading lawyer, will no doubt boost the team's capacity.... [more]

Clifford Chance pulled off quite a coup in September 2011 when it hired José Guardo from Garrigues. Guardo, who is listed as a leading lawyer, will no doubt boost the team's capacity.

Known predominantly for its banking work, the firm has been trying to break into the projects area for some time and the hire of Guardo is a clear statement of intent. If the partner can bring his contact book with him the firm will be well placed to grow.

The firm already has a solid team in place though and one of the largest transactions they worked on last year saw José María Fernández-Daza and Mar Oña advising Neinver on a €350 million joint venture with Meyer Bergman for the joint development of several centres in Katowice, Poland.

Elsewhere a team of practitioners, including Jaime Velázquez, Marcel Enrich, Alvaro San Martín and Carme Briera advised Gas Natural on the €313 million disposal of one 800 MW combined cycle plant in Arrúbal.

[hide]

Leading the Cuatrecasas Gonçalves Pereira team on the project finance side is Fernando Bernad. One outstanding transaction saw him advise on the amendment of the financing in relation to the construction, operation and maintenance of the highway Rutas del Pacífico in Chile.... [more]

Leading the Cuatrecasas Gonçalves Pereira team on the project finance side is Fernando Bernad. One outstanding transaction saw him advise on the amendment of the financing in relation to the construction, operation and maintenance of the highway Rutas del Pacífico in Chile. The other saw him advise Abengoa Solar on its tender process for the financing of two solar energy thermal power stations worth in total €600 million.

Another notable lawyer at the team is Rafael Mínguez who acted for Medgaz on the financing of the subsea gas pipeline between Beni Saf and Almería, which aims to supply natural gas from Algeria to Europe. The mandate was worth €500 million.

Elsewhere the firm also landed the largest transportation project finance in Western Europe 2010 as when Héctor Bros and Jaume Ribó were involved in advising La Caixa and other lenders on the financing of the Barcelona Underground Line 9 stations.

[hide]

A couple of peers suggested that DLA Piper's capacity in project finance is not comparable to other high-ranking firms, as one says: "They don't have that much practice in project finance," while another adds: "I would drop DLA Piper, because they've more banking work, but I don't see them doing much project finance work." The above reasons see the firm drop to tier three.... [more]

A couple of peers suggested that DLA Piper's capacity in project finance is not comparable to other high-ranking firms, as one says: "They don't have that much practice in project finance," while another adds: "I would drop DLA Piper, because they've more banking work, but I don't see them doing much project finance work." The above reasons see the firm drop to tier three.

The firm's head of the practice Javier Santos was involved in most of the DLA's project finance deals in the last 12 months. One cross-border transaction saw a Madrid team led by Santos work alongside their colleagues in London and Warsaw advising the energy company EDP Renovavèis on the Spanish law aspects of the €170 million financing of the 120MW Margonin I wind farm in Poland.

One on-going mandate saw Santo again involved advising on all aspects of the development of four thermal solar power plants in Spain, including financing projects, regulatory, corporate sides alike.

In February 2011, partner César Herrero closed an infrastructure mandate priced at €400 million. He advised BBVA in relation to the restructuring of the financing of Valladolid's main rail network and its urban integration.

[hide]

Allen & Overy according to its peers is considered to be more active in the banking area than in projects, but the team still works on some notable deals.

On the infrastructure side, partner Juan Barona led the team advising a bank syndicate of 18 credit entities on the €491 million debt refinancing of Autopista del Sol Concesionaria Española (Ausol).... [more]

Allen & Overy according to its peers is considered to be more active in the banking area than in projects, but the team still works on some notable deals.

On the infrastructure side, partner Juan Barona led the team advising a bank syndicate of 18 credit entities on the €491 million debt refinancing of Autopista del Sol Concesionaria Española (Ausol). Ausol is the concessionaire through which Ferrovial manages the Spanish motorway toll (AP-7) that links Málaga, Estepona and Guadiaro.

Another highlight saw partners Iñigo Gómez-Jordana and Charles Poole-Warren teaming up to advise Mitsubishi Corporation on the investment of Acciona Termosolar, which is a holding company for solar thermal projects of Acciona group. In addition to that, the team also acted for Mitsubishi and other three Japanese banks on a €300 million credit facility to Acciona for the development of projects.

In a €232 million mandate, lawyers Carlos Marina and Paula Zarzalejos advised a syndicate of banks on the financing of the Zaragoza tramway project. “They've very good partners, they're very active in the market,” says one peer, while another adds: “Gómez-Acebo might have a large number of deals, but probably of less complexity compared to tier-one firms.”

Elsewhere Carlos Rueda and Álvaro Urcola worked together advising a group of banks, including Banco Santander and Société Générale, on the financing of the photovoltaic plants. The financing structure was based on a multi-borrower facility for four different projects.

Some observers also think that the firm is focusing more on local work rather than international mandates. “It's a local firm, most of them are mainly doing local work,” says one.

Leading lawyers
Fernando Igartua Arregui
Carlos Rueda Gómez-Calcerrada
Ángel Varela Varas
[hide]

Ashurst advised on a number of project finance mandates last year. Leading the team is partner Gonzalo Jiménez-Blanco who advised TP Ferro, a concessionaire of the high speed railway link between Spain and France, on the restructuring of the project financing provided by a syndicate of banks, led by BBVA, Banesto, Caja Madrid, ING and RBS.... [more]

Ashurst advised on a number of project finance mandates last year. Leading the team is partner Gonzalo Jiménez-Blanco who advised TP Ferro, a concessionaire of the high speed railway link between Spain and France, on the restructuring of the project financing provided by a syndicate of banks, led by BBVA, Banesto, Caja Madrid, ING and RBS.

In the energy sector, Jiménez-Blanco was again involved advising Banque Havilland on the restructuring of the project financing debt, amounting €48 million, of a 40 MW wind power plant in Puerto Real (Cádiz) managed by Parque Eólico Puerto Real.
[hide]

CMS Albiñana & Suárez de Lezo has involved in a number of infrastructure projects. One example saw José Antonio Rodríguez and Abraham Nájera led the team advised La Caixa on the financing of the construction and exploitation of the Alicante General Hospital car parking.... [more]

CMS Albiñana & Suárez de Lezo has involved in a number of infrastructure projects. One example saw José Antonio Rodríguez and Abraham Nájera led the team advised La Caixa on the financing of the construction and exploitation of the Alicante General Hospital car parking.

Elsewhere Caja Madrid called in the firm when the team advised the bank on the financing of the building and exploitation of a semi-public school in San Martín de la Vega in Madrid.

Again the team acted for Caja Madrid as well as Banco Santander on a similar mandate when they advised on the financing of another semi-public school in Parla in Madrid.
[hide]

KPMG Abogados absorbed Madrid-based commercial boutique Castro Sueiro & Varela Abogados last year and integrated the firm's 26 lawyers into its Madrid office. Previously Castro specialises in commercial issues, renewable energy and infrastructure projects, elsewhere its expertise also include shipping and asset finance.... [more]

KPMG Abogados absorbed Madrid-based commercial boutique Castro Sueiro & Varela Abogados last year and integrated the firm's 26 lawyers into its Madrid office. Previously Castro specialises in commercial issues, renewable energy and infrastructure projects, elsewhere its expertise also include shipping and asset finance.
[hide]

The leading project finance partner at Freshfields Bruckhaus Deringer is Iñaki Gabilondo who advised on most of the firm’s project finance mandates. In the renewable energy sector, Gabilondo acted for HSH Nordbank London branch on the amendment of the financing of two photovoltaic plants located in Manzanares and Herrera, sponsored by Epuron Spain, Clean Energy Investment I and Clean and Green Energy Investments.... [more]

The leading project finance partner at Freshfields Bruckhaus Deringer is Iñaki Gabilondo who advised on most of the firm’s project finance mandates. In the renewable energy sector, Gabilondo acted for HSH Nordbank London branch on the amendment of the financing of two photovoltaic plants located in Manzanares and Herrera, sponsored by Epuron Spain, Clean Energy Investment I and Clean and Green Energy Investments. Elsewhere he advised HSH again on the financing of the construction of a solar power plant of 20MW in Monóvar.
[hide]

Herbert Smith has had a fruitful year in renewable energy, natural resources and infrastructure projects. Miguel Riaño and Marta Sánchez Villalta teamed up advising Caixa, Banesto and other lenders on the project financing of a 50MW biomass plant in Andalucía sponsored by ENCE.... [more]

Herbert Smith has had a fruitful year in renewable energy, natural resources and infrastructure projects. Miguel Riaño and Marta Sánchez Villalta teamed up advising Caixa, Banesto and other lenders on the project financing of a 50MW biomass plant in Andalucía sponsored by ENCE. The mandate involves a complex structure to secure biomass supply over ten years.
 
The duo was again involved advising Inmet Mining Corporation on the financing of a copper mine in the South of Spain. The mandate was granted through term loan and hedge funds by BNP, Natixis, Societe Generale and Trafigura.

Ignacio Echenagusia advised on the waiver and subsequent amendment of the project financing granted to Autovía del Camino, a Spanish motorway concessionaire in the North of Spain.

Leading lawyers
Miguel Riaño
[hide]

Last year the Spanish team advised Ibereolica Moron who acts as the sponsor in the project financing of a 50MW thermosolar power plant Moron de la Frontera-Sevilla in Spain. The mandate was led by Javier Menchén and Álvaro Barro.... [more]

Last year the Spanish team advised Ibereolica Moron who acts as the sponsor in the project financing of a 50MW thermosolar power plant Moron de la Frontera-Sevilla in Spain. The mandate was led by Javier Menchén and Álvaro Barro.

The duo was again involved advising La Caixa on the €42 million credit financing of the construction of the Junta de Andalucia administration headquarters building. [hide]

In the renewable energy sector, a team of lawyers from Watson Farley & Williams, including Joaquín Sales, Ignacio Borrego, Borja Oxangoiti and Yasmina Frasquet, advised Banco Santander and BBVA on the financing of three wind farms sponsored by Endesa.

Elsewhere Sales and Oxangoiti teamed up to advise Bank of Tokyo Mitsubishi on the financing of a photovoltaic project in Tenerife in Spain, the amendment of feed-in tariffs has resulted in significant changes in the financial model which adds complexity to the transaction.... [more]

In the renewable energy sector, a team of lawyers from Watson Farley & Williams, including Joaquín Sales, Ignacio Borrego, Borja Oxangoiti and Yasmina Frasquet, advised Banco Santander and BBVA on the financing of three wind farms sponsored by Endesa.

Elsewhere Sales and Oxangoiti teamed up to advise Bank of Tokyo Mitsubishi on the financing of a photovoltaic project in Tenerife in Spain, the amendment of feed-in tariffs has resulted in significant changes in the financial model which adds complexity to the transaction.

In addition, the duo advised Hispasat on the financing of a new satellite, and the highlight involved US ExIm bank's financing of the project.
[hide]

The project finance team at Linklaters is led by Pedro de Rojas and Diego Recondo.

While financing work in the Iberian peninsular has been relatively low on the ground, the firm has made good use of its international network to engage its Madrid based partners on cross border mandates.... [more]

The project finance team at Linklaters is led by Pedro de Rojas and Diego Recondo.

While financing work in the Iberian peninsular has been relatively low on the ground, the firm has made good use of its international network to engage its Madrid based partners on cross border mandates.

One such example saw de Rojas link up with colleagues from the firm's Dubai, Amsterdam and London offices to advise on a joint venture between Total and Abengoa Solar entitled the Total Abengoa Solar Emirates Investment Company. The project will see the two firms combine to construct and operate a 100W solar thermal power plant in Abu Dhabi. The two parties are joined in the venture by the Abu Dhabi Future Energy Corporation (ADFEC). It is notable for being the first renewable energy project in the Gulf region. [hide]