FERRERE was retained by International Finance Corpotarion (IFC) and acted as special Paraguayan counsel to in the granting to Banco Continental S.A.E.C.A. (Continental) of an unsecured loan of USD 100,000,000, with a 5-year maturity. This is the 4th investment transaction entered into by IFC and Continental and is focused on the granting of sub-loans by Continental to local agribusiness and SMEs.
Further, FERRERE assisted (i) performing a limited due diligence of Continental, (ii) analyzing the financial documents governed by New York law for conformity with local laws and practices, and (iii) drafting the financial documents governed by local law.
Continental is the largest bank in Paraguay in terms of loans and assets, offering financial products and services for SMEs, corporates and individuals, with SMEs and corporates as its main segments. “With IFC’s funding, Continental will be able to offer to its clients longer maturities and better structures, helping them to improve their productivity and growth”, declared Teresa Gaona, Vice-president of Continental.
Additionally, IFC’s Regional Industry Manager stated: “through this new investment, Continental will be able to extend the tenor of its lending to SMEs and agribusiness companies, which is key to allow them to plan, grow and hire new employees”.
Nicholson y Cano, a Buenos Aires-based law firm, through partner Mariano Fabrizio, acted as transaction counsel for IFC, assisting with the drafting, negotiation and closing of the loan agreement, and further coordinated legal services for IFC with the local counsel in Paraguay.