The beneficiary of this financing is BICSA, a client we already have relations with via USD 30m of financing allocated in 2016 for renewable energy and energy efficiency projects (12 years with a two and a half-year grace period – LIBOR 6M + 320 bp).
The proposed transaction involves a USD 25m senior loan to BICSA with a 7-year maturity, including a 2-year grace period, with a gross margin of 340 bp.
This new credit line will finance BICSA’s SME clients, a segment that accounts for 29% of its loan portfolio and in which our client is currently strengthening its position.
Through this financing, Proparco should contribute to (i) diversifying BICSA’s long-term liabilities, which are currently highly dependent on deposits, in order to support the growth in its SME financing activity in the Central American region and (ii) supporting employment for local communities in Panama and Central America: 2,500 jobs in BICSA’s client SMEs could be supported over the next 5 years. Indeed, SMEs are a key segment for the economic development of Central America.
This new operation will strengthen our business relationship with a high-quality client, backed by strong shareholders, and thereby continue to help it improve its E&S and Governance practices.
This information is given at the time of signature, without prejudice to any developments in the operation/project