First issuance of bonds of Transportadora de Gas del Perú S.A. is performed successfully

Transportadora de Gas del Perú S.A. (?TGP?) issued and placed US$ 270 million under its Peruvian registered bond program for up to US$ 350 million to finance the Camisea pipeline project.

Placement of the US$ 270 million was completed in two simultaneous issuances: one for US$ 200 million, in dollar denominated bonds, for a tenure of 15 years at LIBOR plus 3.5%; and one for US$ 70 million, in Peruvian currency denominated bonds, for a tenure of 25 years at inflation adjusted value plus 7 1/8%. Both issuances were oversubscribed, with record tenors and amounts for the Peruvian capital market.

The bond program is secured by mortgages over the concessions for transportation of natural gas and LNG; a pledge over 100% of the shares of TGP; a Peruvian trust (fideicomiso) on sale contracts, on the income guaranteed by the Peruvian state (for the ten first years of the project), and on insurance proceeds; and, an New York trust for sales offshore.

TGP, a Peruvian limited liability corporation formed by Tecgas (the pipeline operator), Pluspetrol, Hunt Oil, SK, Sonatrach, Suez-Tractebel and Graña y Montero, is the concessionaire for the transportation of natural gas and LNG from the Camisea field in the jungle to the coast of Peru.

The downstream project was completed in August 2004 and required a US$ 850 million investment, primarily funded with equity, a portion of which will be repaid to the shareholders of TGP through the financing in order to achieve a reasonable capital structure.

Banco de Crédito del Perú, was advised by partner Oscar Arrús of Rubio Leguía, Normand & Asociados S.R.L.. Also involved in this transaction were partner Juan García Montúfar and associate Thomas Thorndike.

Also, participated in the transaction in-house lawyer of Banco de Crédito del Perú Diego Peschiera. Fernando Mantilla was the in-house lawyer of Tecgas and Renzo Viani was the in-house lawyer of TGP working on the eal.

Transportadora de Gas del Perú was advised by partner Sergio H. Oquendo, and associates Ricardo E. Escobar, María Julia Aybar and Isabel Gutiérrez, from Muñiz, Forsyth, Ramírez, Pérez-Taiman & Luna-Victoria.

En USA Sullivan & Cromwell acted as U.S. counsel to TGP through partner Christopher L. Mann, Daniel Almaguer and Kelly Huffman.

Cleary, Gotlieb, Steen & Hamilton acted as U.S. counsel to the structuring agent (Banco de Crédito del Perú).

The pipeline for natural gas is 731 km. long, while the LNG pipeline is 561 km.

The transaction contemplated both onshore and offshore security packages. The Peruvian bondholders will share the collateral with other senior secured lenders, including the Inter-American Development Bank and the Corporación Andina de Fomento (the ?MLAs?).