Hogan Lovells advises IDB Invest in US$25 million loan injection for SMEs in Panama
Washington, D.C., 24 April 2019 – A cross-border team of lawyers from Hogan Lovells has advised IDB Invest, a member of the Inter-American Development Bank (IDB) Group, in providing a US$25 million loan to Republic of Panama-based St. Georges Bank & Company Inc. The funds will be used to support Panamanian small and medium-sized enterprises (SMEs).
The loan, which includes both senior and subordinated tranches, will improve the capitalization of St. Georges Bank and further its strategy of prioritizing loans to Panamanian SMEs. That strategy includes increasing the ability of Panamanian SMEs to accept credit cards transactions linked to its point-of-sale business; increased availability of electronic billing; scaling up reverse factoring (which provides companies with cash for working capital); and increasing the origination of credit in sustainable investments.
The Hogan Lovells team was led by partner Ricardo S. Martinez (New York), with support from associate Juan Enrique Lizardi (Mexico City), and foreign legal associate Antonio de la Esperanza (Mexico City).
Hogan Lovells also recently advised IDB Invest in connection with a US$15 million loan facility in favor of Financiera Desyfin, S.A., the largest financial institution in Costa Rica in December 2018.
About IDB Invest:
IDB Invest, a member of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable enterprises and projects to achieve financial results that maximize economic, social and environmental development for the region. With a portfolio of assets of US$12.1 billion under management and 329 clients in 21 countries, IDB Invest works across sectors to provide innovative financial solutions and advisory services that meet the needs of its clients.
About St. Georges Bank & Company Inc.
St. Georges Bank is a banking entity established in the Republic of Panama and part of the Promerica Group, made up of a group of financial institutions linked through the Promerica Financial Corporation (PFC) holding, with presence in Central America, Dominican Republic, Grand Cayman and Ecuador, with a total of consolidated assets that exceed US$14 billion and more than 2.2 million customers. Founded in 2001, St. Georges Bank maintains a firm commitment to excellence in customer service, innovation and corporate social responsibility, to generate opportunities for progress and sustainable development for the country. As of March 2019, the Panamanian entity has a total of US$1,630 million in assets and close to 68 thousand clients.
About Hogan Lovells
Hogan Lovells is a leading global legal practice providing business-oriented legal advice and high-quality service across its exceptional breadth of practices to clients around the world.
"Hogan Lovells" or the "firm" is an international legal practice that includes Hogan Lovells US LLP and Hogan Lovells International LLP. For more information, see www.hoganlovells.com.