Arias acted as Nicaraguan counsel to Banco Lafise Bancentro in the sale, assignment, transfer, and conveyance of all the bank´s Diversified Payment Rights and all collections thereunder to a Cayman Islands entity, as well as an issuance of bonds with the participation of the Bank of New York Mellon, as program agent. Arias likewise advised the bank on a US$100 million loan granted by various financial institutions, including Credit Suisse AG, Cayman Islands Branch, Bancaribe Curacao Bank N.V., Multibank Inc., Finantia UK Limited, Pacific Life Insurance Company, and Société de Promotion et de Participation pour la Coopération Economique S.A., amongst others, destined to financing Nicaraguan exporters. The Firm´s role included advising on the financial structure of the transaction, but most importantly on local banking and supervisory regulations, ensuring compliance of local laws, validity and enforceability of the transaction. The deal closed August 6th, 2019.
This transaction is particularly relevant, as it is the first of its kind in Nicaragua, opening possibilities to diverse and innovative financing structures to local entities.
Counsel to Banco Lafise Bancentro:
Hogan Lovells, US counsel.