Morgan & Morgan advised Avanzalia Panamá, S.A. on a secured bond issuance of up to US$100 million strengthening the financial structure of Penonomé I, Central America’s largest solar photovoltaic plant.

Morgan & Morgan advised Avanzalia Panamá, S.A. (“Avanzalia” or the “Issuer”) in connection with the registration before Panama’s Superintendencia del Mercado de Valores (“SMV”) of a US$100 million Corporate Bond Revolving Program and the successful placement of its US$90 million Senior Series A Bonds. The offering was authorized by SMV Resolution No. SMV-233-25 dated June 25, 2025, and listed on the Latin American Securities Exchange (“Latinex”).

The proceeds of the issuance were primarily used to repay the credit facility granted by the contractor responsible for the construction of the Penonomé I Solar Photovoltaic Plant. The transaction enabled the replacement of construction financing with long-term financing from the Panamanian capital markets, strengthening the financial structure of one of the region’s most significant renewable energy assets.

With an installed capacity of 120 MW, Penonomé I is the largest solar photovoltaic power plant in Panama and Central America, positioning it as a strategic asset for clean energy generation and the region’s energy transition. The facility is located in El Coco, Penonomé District, Coclé Province, Republic of Panama.

Avanzalia Panamá is a subsidiary of Avanzalia Solar, S.L., a Spanish renewable energy group with a strong track record in the sector and approximately 850 MW of photovoltaic capacity developed across Spain, Italy, and Panama.

Morgan & Morgan’s representation covered all regulatory, corporate, financing, and security structure aspects of the transaction, including the structuring and registration of the offering before the SMV and Latinex, assistance with the placement of the Senior Series A Bonds in the primary market, and the structuring, negotiation, and perfection of the comprehensive security package securing the obligations under the issuance. The security package includes a collateral trust administered by MMG Bank Corporation, S.A., as trustee, which holds, as part of the trust estate, a mortgage over real property and rights arising from the generation license, a chattel mortgage over the plant’s principal assets, a pledge over 100% of the Issuer’s shares, and the irrevocable assignment of receivables and cash flows, together with the conditional assignment of material project agreements.

The transaction highlights the growing importance of Panama’s capital markets as a financing source for large-scale infrastructure and renewable energy projects and represents a landmark transaction for the financial consolidation of one of the most important solar generation assets in the region.

The Morgan & Morgan team that advised on the transaction was comprised of partners Ana Carolina Castillo and Ramón Varela, and senior associate Miguel Arias.