Arias on FMO’s $23m financing to Volcafe
Arias Law has advised locally the Dutch Business Development Bank (FMO) in Costa Rica and Honduras on the USD $23m financing to Volcafe, a leading global green coffee trader.
The financing will provide the necessary working capital to supply and market coffee. The loan is also aligned with FMO’s development and environmental goals, impacting the coffee producers supported by Volcafe.
The consultancy involved the structuring of the loan and local collateral documents, such as the mortgage deed, promissory notes and collateral agent contract. A global financing structure was established, which included the creation of a first mortgage in Costa Rica. This mortgage served as collateral, securing the lender’s right of first refusal on the assets in case of default.
Arias’ team was led by partner Diego Gallegos (pictured left), from Costa Rica, and partner Mario Agüero (pictured right), in Honduras, with support from senior associate Arianne Silva, and paralegal Mariana Garcia, both from the Arias team in Costa Rica.
