Morimor acts in CIFI’s green bond issue

Morgan & Morgan acted as advisor to Corporación Interamericana Para El Financiamiento de Infraestructura (CIFI), as issuer, in the issuance and sale of green bonds through the Latin American Stock Exchange (Latinex) for an amount of US$10,000,000.

This transaction marks the first issuance of a security by a private equity corporate issuer through the iLink (International Link) platform of Central Latinoamericana de Valores (Latinclear) and Euroclear Bank (Euroclear). Securities issued through iLink are truly internationalised because they are ‘euroclearable’, i.e. they are available through the Euroclear ecosystem and, as such, can be purchased by Euroclear customers in more than 120 countries.

Latinclear established iLink with Euroclear in 2014 and is being developed in three phases. The first phase enabled the issuance through iLink of securities issued by Panamanian government and quasi-government entities and has been active since April 2014. The implementation of the second phase, which was activated in February this year and allows for the issuance through iLink of debt securities issued by Panamanian private equity firms, is the result of a decade-long effort by the capital markets sector, led by Latinex, and this CIFI green bond issuance is the first successful phase two issuance. The third phase of the project will allow the issuance of shares and other equity securities.

The green bonds were purchased by CAF – Development Bank of Latin America and the Caribbean – and are secured by a guarantee trust set up between CIFI, as trustor, and MMG Bank Corporation, as trustee. Affiliated companies of CIFI act as guarantors and provided corporate surety bonds in favour of the trust to secure CIFI’s obligations under the green bonds. MMG Bank Corporation also acted as structurer, securities house and broker-dealer for the green bonds.

Morimor’s team consisted of partner Ricardo Arias (pictured), and associates Ariana Linares and Katia Pallares.