news - FMO and Bladex mobilize US$50 million in syndicated transaction to Banco Continental, Paraguay's largest SME lender

FMO has signed a US$50 million syndicated facility with existing client Banco Continental S.A.E.C.A. The facility consists of a US$15 million FMO loan and a US$35 million B loan with seven participants: Banco Latinoamericano de Comercio Exterior, S.A. (“Bladex”); BHD International Bank (Panama), S.A.; First Citizens Financial Services (St. Lucia) Limited; Multibank Inc.; Banco Internacional de Costa Rica, S.A. – Miami Agency; Bancaribe Curaçao Bank, N.V.; and Banco Lafise Panama, S.A. This landmark commercial syndicate was co-arranged by FMO and Bladex.

Banco Continental is Paraguay’s largest lender to small- and medium-sized enterprises (SMEs) and corporate entities. The loan facility will be used to enable Banco Continental to organically expand its loan portfolio, through continued financing to SME and corporate clients.

“We believe this transaction is highly significant because it places us as the first local bank to sign a syndicated loan agreement with commercial banks,” said Mrs. Teresa Gaona de Bobadilla, Director at Banco Continental. “This operation will facilitate the implementation of policies for the development of SMEs in the medium and long term. The support shown so far by FMO and BLADEX in carrying out this agreement was well appreciated”.

This transaction will strengthen FMO’s non-financial partnership with Banco Continental, particularly through the development of an environmental and social (E&S) sector guide for the agricultural and cattle value chains. This, in turn, will strengthen the momentum in the sector for positive E&S change, which FMO strives to stimulate through all investments in Paraguayan financial institutions.

Huib-Jan de Ruijter, Director of Financial Markets at FMO, said: “We are proud to have worked together with Bladex to mobilize new commercial investors for this landmark transaction. The Paraguay market offers many opportunities, and together we are looking forward to making economic, but also social and environmental, impact with a strong partner in Banco Continental.”

Alejandro Jaramillo, Head of Loan Structuring and Distribution at Bladex, commented: “We are very pleased to have joined forces with FMO in arranging this important transaction for one of Paraguay’s largest banks, and to have been able to present new banking relationships to Banco Continental.”

This loan facility follows a US$54 million syndicated term loan, extended by FMO, IIC and OFID to Banco Continental in 2013. The current transaction forms another building block in FMO’s Paraguay commitment, where we continue to support our clients in helping to protect the remaining forested areas.

About FMO
FMO (the Netherlands Development Finance Company) is the Dutch development bank. FMO supports sustainable private sector growth in developing and emerging markets by investing in ambitious entrepreneurs. FMO believes a strong private sector leads to economic and social development, empowering people to employ their skills and improve their quality of life. FMO focuses on three sectors that have high development impact: financial institutions, energy, and agribusiness, food & water. With an investment portfolio of EUR 6.6 billion, FMO is one of the largest European bilateral private sector development banks. www.fmo.nl

ABOUT Bladex
Bladex is a Panama-based supranational bank established by the central banks of Latin-American and Caribbean countries, to promote foreign trade finance and economic integration in the Region. Bladex is listed on the NYSE-Euronext in the United States (ticker symbol: BLX). Bladex´s shareholders include central banks, state-owned banks and entities representing 23 Latin American countries, as well as commercial banks and financial institutions, and institutional and retail investors through its public listing. The Bank has offices in Argentina, Brazil, Colombia, Mexico, Peru, and the United States of America, to support the expansion and servicing of its client base, which includes financial institutions and corporations.

ABOUT Banco Continental S.A.E.C.A.
Banco Continental is committed to contributing to the sustainable use of natural resources and to improving quality of life. 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 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 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, for example by supporting clients in becoming compliant with environmental requirements and in reaping additional benefits of sustainability oriented management. By promoting environmental and social responsibility among its clients and good environmental and social practices in the activities financed, Banco Continental seeks to maintain compatibility between economic activities and nature.