5.8. Summary of Pension Funds role in project financing

There are attractive arguments for Peruvian Pension Funds to invest in a domestic fertilizer project under a project financing scheme.

First the project itself contributes to the development of the Peruvian economy with a new quality. The competitive production of a commodity with strong growth forecast for the world market and the domestic market delivers a sound baseline.

Employment and qualification of people, the subsequent development of downstream businesses are further good reasons for the realization of the project with participation of Pension Funds.

The project financing scheme allows arranging securities and commitment as the Pension Funds them require, because of regulations or internal portfolio considerations.

Trust and confidence in the other parties involved in the project financing scheme are an essential element for project realization. To overcome the informational asymmetries between the sponsors and the Pension Funds is therefore of great importance.

The right financial vehicle and volume have to be found in discussions with interested parties as the parameters very much depend on the individual situation.