Pellerano & Herrera The Pellerano & Herrera Foundation

US$100 million bond issuance by Grupo Popular to Meliá Group

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Pellerano & Herrera counselled Grupo Popular in a US$100 million corporate bond issuance of Desarrollos Sol, local subsidiary of renowned hotel group, Meliá Group in the local stock market. The funds of such issuance, which was approved on March 3, 2015, by the National Securities Counsel of the Dominican Republic, will support Meliá Group's investment programs in the country. This is the first bond issuance in the hospitality sector of the Dominican Republic, the first issuance in the local stock market which is secured by a trust, and the first issuance in US dollars by Meliá Group outside Europe.

The issuance is guaranteed by a collateral trust that is managed by Fiduciaria Popular, subsidiary of Grupo Popular, and will also have a joint guarantee of Meliá Hotels International, company of Meliá Group. The trust’s assets consist of real estate property and bank accounts.

The team of Pellerano & Herrera, led by partner Mariangela Pellerano, advised Grupo Popular in the structuring of the issuance. The firm maintains its position as a promoter of foreign investment in the country and as a counsel of the most important transactions in the country.