García & Bodán advises Instacredit on issuance of Corporate Bonds
García & Bodán, through its offices in Costa Rica and Nicaragua, has assisted Instacredit in the issuance of Corporate Bonds
García & Bodán has advised Instacredit on the constitution of guarantees in Costa Rica and Nicaragua to back the issuance of Corporate Bonds on the Panama Stock Exchange, which was carried out through its holding company, Marevalley Corporation. The issue will be divided into several placements in the Panamanian securities market under a revolving programme with a term of no more than 10 years, backed by its loan portfolio amounting to $150 million US dollars.
The advisory facilitated the process that allowed the issuance of bonds with Panama, as well as the structuring of the Guarantee Trusts in Costa Rica, Nicaragua and Panama. The main objective of the Guarantee Trusts is to ensure that investors have the best possible coverage of the securities, as well as to improve the rating of the issue by placing Guarantee Trusts as collateral in each of the countries. The firm is also advising in Costa Rica and Nicaragua on compliance with the legal formalities to be fulfilled before the issuer’s regulators, as well as the formalities to proceed with the contribution of assets to the trust structure, and the mechanisms for the execution of assets to support investors if necessary.
Also participating in the transaction were: MMG Bank Corporation of Panama, the Panamanian law firm Morgan & Morgan, as well as MMG Fiduciaria, with lawyers from Banco Improsa of Costa Rica and with lawyers from Banco Promerica Banpro of Nicaragua.
Instacredit, founded in Costa Rica in 2000, is a financial solutions company that offers personal loans to salaried employees, merchants and collateral loans to workers and businesses. It currently has operations in Costa Rica, Nicaragua, Panama and Mexico.
García & Bodán Costa Rica team was composed of partner Carlos Gómez Fonseca (pictured left) and senior associate Ivania Araya Vargas; the Nicaragua team was composed of partner Carlos Téllez Páramo (pictured right) and paralegal Carla Jirón García.
