Odebrecht Peru deal hits snag as banks fret over $4.1 billion loan

Lenders could accelerate the disbursement of a $4.125 billion loan to Peruvian gas pipeline operator Gasoducto Sur Peruano GSP SA if Brazilian engineering group Odebrecht SA fully exits the project overseeing the construction of the pipelines, three people familiar with the matter said on Thursday.

Odebrecht [ODBES.UL], which is ensnared in a corruption scandal in Brazil, is pulling out of Peru to raise cash and repay debts. For the banks, Odebrecht’s exit from the construction portion of the project would make financing less risky, one of the people said.

The group of about 20 banks working on a syndicated loan to GSP this week rejected three bids for Odebrecht’s 55 percent stake in the pipeline operator, as bidders refused to buy the Brazilian firm’s 71 percent interest in the project overseeing the construction of GSP’s pipelines, the people said.

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