FMO, the Dutch Development Bank announces that it has closed a USD 100 million syndicated loan for Banco Continental S.A.E.C.A. in Paraguay (“Banco Continental S.A.E.C.A.”). The loan was co-arranged with Banco Latinoamericano de Comercio Exterior (“Bladex”) and has an A/B structure with a total of eleven participants.
Parallel members of the A Tranche include The Belgian Investment Company for Developing Countries (“BIO”), Triodos Investment Management, through its inclusive finance funds (“Triodos”), and FMO who provided an aggregated amount of USD 47 million. FMO contributed with USD 17 million. Participants of the B Tranche, including Bladex contributed an aggregate of USD 53 million.
Teresa Gaona, Director of Banco Continental S.A.E.C.A., affirmed: “The syndicated facilities, co-arranged by FMO and Bladex, allow us to diversify our sources of medium-term funding and facilitate the financing of sustainable investments and job creation, which contribute to the country’s economic and social development. The success of the transaction underscores the confidence of participating investors in the ample experience and solvency of Banco Continental S.A.E.C.A.”
Rubens V. Amaral Jr., Chief Executive Officer of Bladex, stated: “We are very pleased to continue to support the funding diversification efforts of our important client in Paraguay, Banco Continental S.A.E.C.A., and to team-up once again with FMO to structure and syndicate this facility. This transaction highlights Bladex’s access to a wide network of regional and international financial institutions, helping Banco Continental S.A.E.C.A. access medium-term funding in a challenging and volatile environment.”
Of the total loan amount USD 47 million will be used for small and medium enterprises (“SMEs”). In a country where SMEs extensively lack long-term finance, Banco Continental S.A.E.CA., as one of the largest institutions in the country, is ideally positioned to help them and further develop the economic sector.
This transaction will also strengthen FMO’s non-financial partnership with Banco Continental S.A.E.C.A., through the development of the sector wide Sustainable Finance Initiative, in which Banco Continental S.A.E.C.A. plays an important role. The Sustainable Finance Initiative sets a level playing field for all participating institutions and provides guidance to Paraguay’s financial institutions that are exposed to the complex Environmental and Social dilemmas.
“FMO is proud to have co-arranged this facility for Banco Continental S.A.E.C.A. in Paraguay. It will provide much needed finance for SMEs, thereby supporting job creation and economic and social development”, said Nanno Kleiterp, CEO of FMO.
This loan facility follows a US$50 million syndicated term loan, arranged by FMO and Bladex for Banco Continental S.A.E.C.A. in 2014. The current transaction forms yet another building block in FMO’s and Bladex commitment to support Banco Continental S.A.E.CA. and Paraguay
About FMO
FMO is the Dutch development bank. FMO has invested in the private sector in developing countries and emerging markets for more than 46 years. Our mission is to empower entrepreneurs to build a better world. We invest in sectors where we believe our contribution can have the highest long-term impact: financial institutions, energy and agribusiness. Alongside partners, we invest in the infrastructure, manufacturing and services sectors. With an investment portfolio of EUR 9.2 billion spanning over 85 countries, FMO is one of the larger bilateral private sector development banks globally. www.fmo.nl
Press contact:
Paul Hartogsveld
Senior Corporate Communications
T: +31 70 314 9928
M: +31 6 11589127
E: p.hartogsveld@fmo.nl
About Bladex
Bladex is a multinational bank originally established in 1979 by the central banks of Latin-American and Caribbean countries in order to promote foreign trade finance and economic integration in the Region. The Bank, headquartered in Panama, also counts with offices in Argentina, Brazil, Colombia, Mexico, Peru, and the United States of America, supporting the regional expansion and servicing its customer base, which includes financial institutions and corporations.
Bladex is listed on the NYSE in the United States of America (NYSE: BLX), since 1992, and its shareholders include: central banks and state-owned banks and entities representing 23 Latin American countries; commercial banks and financial institutions; and institutional and retail investors through its public listing.
For further information, please access Bladex’s website at www.bladex.com.
About Banco Continental S.A.E.C.A.
Banco Continental S.A.E.C.A. is committed to contributing to the sustainable use of natural resources. The bank implements this commitment through the analysis of client’s activities and their environment, breaking with the assumption that private business is disconnected from social and environmental challenges. In pursuit of sustainable development - connecting economic growth, social equity and ecological value - Banco Continental S.A.E.C.A. seeks to adapt to the trends of a globalizing world by adopting high standards of environmental responsibility, responding to the increasing awareness and expectations of society. Banco Continental S.A.E.C.A applies an environmental and social risk management system and aims to broaden its strategy to include an incentive system for clients with good environmental and social management. By promoting environmental and social responsibility among its clients and good environmental and social practices in the activities financed, Banco Continental S.A.E.C.A. seeks to maintain compatibility between economic activities and nature.
