Political Risk Latin America Blog @PolRiskLatam

IDB closes the first ever internationally syndicated loan in Paraguay

Posted in News and Articles, Political Risk by politicalrisklatam on December 15, 2010

by the Inter-American Development Bank, December 14th, 2010.

IDB partners with Banco Continental, Blue Orchard and responsAbility Social Investments AG in a $40 million A/B Loan to boost lending to small businesses.

The Inter-American Development Bank (IDB) closed a $40 million syndicated loan with Banco Continental in Paraguay to help fund lending to small and medium-sized business.

The operation consists of a five-year loan of $25 million (A Loan) from the IDB’s own resources with a two-year grace period; and $15 million syndicated loan (B Loan) involving private investors through the sale of participations divided in two tranches.

The first tranche of $5 million, funded by Dexia Micro-Credit Fund, managed by BlueOrchard, has a three-year bullet repayment. The second tranche of $10 million, with a five-year maturity and two-year grace period, was funded by responsAbility SICAV (Lux) Mikrofinanz-Fonds and responsAbility SICAV (Lux) Microfinance Leaders, managed by responsAbility Social Investments AG. The IDB was the lead arranger in this transaction.

This transaction constitutes a milestone for Banco Continental and the IDB. This is the first ever internationally syndicated Loan in Paraguay, and the first time that the IDB has engaged with responsAbility as lender for an operation. For Banco Continental, it is the first time to access international investors through a syndication. (continue reading… )



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