Cuatrecasas advises RAA on obtaining financing for projects to modernize irrigation systems and farms in Huesca and Zaragoza
Cuatrecasas advised Riegos Alto Aragón (RAA) on negotiating with the Spanish State Finance Agency (ICO) to obtain financing to modernize irrigation systems at 27 farms in its area of influence, thus improving the use of the available water resources. RAA covers over 135,000 hectares and supplies 113 towns and villages in the provinces of Huesca and Zaragoza in what is the largest irrigation system in Spain and in the European Union.
The transaction was implemented through a financing agreement between ICO and RAA involving individual loan contracts for the owners of the farms where the improvement works would be carried out; the State Agricultural Guarantee Institute (SAECA) supports the project. Regarding the obligations assumed by RAA with ICO, credit rights pledges have been established as a form of guarantee for ICO in case of non compliance by the irrigation farmers and SAECA.
“This is the second transaction in which we have had the opportunity to collaborate with RAA. We continue with our support work, which makes us proud and leads to great satisfaction due to the direct effect our contribution has on the real economy of our land,” stated Ángel Luis Modrego, counsel of the firm’s Corporate and M&A Practice.