Banco Promerica of Costa Rica S.A.’s $20 Million Partial Credit Guarantee Facility (PCG)

Zurcher, Odio & Raven advised Banco Promerica de Costa Rica, Allen & Overy, BLP – Costa Rica and Arias, Fábrega & Fábrega – ARIFA advised IDB Invest on the transaction

IDB Invest, a member of the IDB Group, provided Banco Promerica of Costa Rica S.A., a partial credit guarantee facility (PCG) of up to $20 million. This facility will guarantee one or more green, social and sustainable bond issuances in the Panama stock market under the bond program, which will help improve access to financing for small and medium-sized enterprises (SME) and expand their portfolio of green credit in Costa Rica.

The first issuance under the $50 million bond program, authorized by the Superintendency of the Securities Market of Panama, will be a sustainable bond for $10 million that will have a PCG from IDB Invest of 30 percent of the principal amount issued and in circulation. This issuance will be placed in the Panamanian market through MMG Bank, co-structuring agent and brokerage firm for the bond program.

The projects financed by this first issuance are expected to have a positive impact on the SME and green finance segment in Costa Rica. According to the Ministry of Economy, Industry and Commerce of Costa Rica, approximately 93 percent of the country’s companies are classified as SME, and of that percentage, 67 percent are considered micro-enterprises, 25 percent are small companies and 8 percent medium-sized companies.

The deal will also contribute to strengthening capital markets and thematic bonds in Panama and Costa Rica, consolidating Banco Promerica of Costa Rica as an issuer generating high social and environmental impact, and contributing to its sustainable development. This sustainable bond issuance carried out on the Panama Stock Exchange will be the first of its kind in Central America.

Zurcher, Odio & Raven advised Banco Promerica de Costa Rica, S.A. with Douglas Soto (Picture) and Miguel Elizondo.

Allen & Overy advised IDB Invest with Sami Asad Mir and Rebecca Stubbs.

In Costa Rica, BLP advised IDB Invest with Pablo Umaña.

Arias, Fábrega & Fábrega – ARIFA advised IDB invest in Panama.

Involved fees earner: Sami Mir – Allen & Overy; Rebecca Stubbs – Allen & Overy; Pablo Umana – Allen & Overy; Miguel Elizondo – Zürcher Odio & Raven; Douglas Soto – Zürcher Odio & Raven;

Law Firms: Allen & Overy; Zürcher Odio & Raven;

Clients: Banco Promerica; IDB Invest;

Leave a Reply