FERRERE advised Oesterreichische Entwicklungsbank AG (OeEB), the Austrian Development Bank, on granting a senior credit line for up to USD 20 million to Ueno Bank S.A. The transaction was documented in a Term Facility Agreement under Austrian law between OeEB, as lender, and Ueno Bank S.A., as borrower.
The transaction is OeEB’s first investment in Paraguay, and represents a new source of long-term financing for the local market, setting a milestone in strengthening credit access in the country. The resources will be used to broaden access to financing for micro, small and medium-sized enterprises (MSMEs), as well as sole proprietorships (commercial and professional), with special focus on women-led companies. In turn, it will also provide support to projects eligible for green financing, including energy efficiency, environmental sustainability and climate change mitigation initiatives.
The financial documentation incorporates a solid framework of obligations and standards applicable to the borrower in terms of regulatory compliance and prevention of asset laundering and terrorism financing, as well as environmental and social requirements in line with international standards, including implementation and maintenance of an Environmental and Social Management System (ESMS) and compliance with International Finance Corporation Performance Standards.
FERRERE acted as OeEB’s Paraguayan legal advisor during the full stages of structuring, negotiation and implementation of the transaction, covering all aspects of Paraguayan law related to the operation, including regulatory issues, financial documentation review from a local perspective, the borrowers’ capacity to enter into and perform the financing documents, and the structuring of notes issued under Paraguayan law as a complementary mechanism to strengthen enforceability of the obligations assumed.
The FERRERE team in charge of the transaction was led by partner Carlos Vasconsellos and counsel Claudia Arietti. The team also included Yamina Centurión, Nicole Vuyk and Anna Paula Manchini.