Norton Rose Fulbright advises Banconal on US$510 million in credit facilities, guaranteed by MIGA

Global law firm Norton Rose Fulbright recently advised Banco Nacional de Panama (Banconal) on two credit facilities arranged by Goldman Sachs and Societe Generale – totaling US$510 million – which are guaranteed by the Multilateral Investment Guarantee Agency (MIGA).

Banconal will use the proceeds to diversify its overall resources and improve its ability to obtain future long-term funds in the wake of the COVID-19 pandemic. This transaction was complex because the Goldman Sachs' facility was funded through the issuance by a Luxembourg orphan entity of bonds that repackaged the loan obligations of the underlying credit facility.

According to MIGA, the Loan Facility would allow (Banconal) to provide (i) liquidity to the financial system, should needs arise in the event of a banking crisis that results from COVID-19; (ii) working capital loans, directly or indirectly, to SMEs and priority sector companies to keep businesses operating during the acute phase of the crisis; and (iii) working capital, directly or indirectly, to SMEs and priority sector companies to help them rebuild towards achieving normality once the acute phase of the crisis is over.

José Cobeña (São Paulo) led the credit facilities transaction, and George Baptista (New York) advised on the repackaging transaction. Other members of the Norton Rose Fulbright team included Daniel Spencer and Cameron Royse (São Paulo); and Manny Rivera, Kevin Prokup and Javier Félix Muñoz (New York).