García & Bodán advises Instacredit on issuance of Corporate Bonds

García & Bodán advised Instacredit in the constitution of guarantees in Costa Rica and Nicaragua to support the issuance of Corporate Bonds in the Panama Stock Exchange, which was carried out through its holding company, Marevalley Corporation. The issue will be divided into several placements in the Panamanian securities market under a revolving program for a term not to exceed 10 years, supported by its loan portfolio totaling US$150 million.

The legal advice rendered by García y Bodán helped ease the process that enabled the issuance of bonds with Panama, as well as the structuring of Guarantee Trusts in Costa Rica, Nicaragua, and Panama. The main objective of the Guarantee Trusts is to ensure that investors have the best possible coverage of the securities as well as to improve the issuance rating by placing as collateral, Guarantee Trusts in each of the countries.  

García & Bodán's team of lawyers reviewed the different models of prospectus for the issuance, also provided advisory for the linkage of the issuance to the Guarantee Trusts in Costa Rica and Nicaragua, as well as the relationship between the trusts, trustees, and the paying agent of the issuance, which is MMG Bank Corporation of Panama. Likewise, García & Bodán is also advising in Costa Rica and Nicaragua on compliance with the legal formalities to be fulfilled before the issuer's regulators, as well as the formalities to proceed with the contribution of assets to the trust structure, and the mechanisms for the execution of assets to support investors if necessary.

The advisory was carried out under the supervision of Carlos Gómez Fonseca, Partner of García & Bodán Costa Rica, with the support of Partner Carlos Téllez Páramo of García & Bodán Nicaragua and Senior Associate Ivania Araya Vargas of García & Bodán Costa Rica, Carla Jirón García in Nicaragua, in conjunction with the legal teams of MMG Bank Corporation of Panama, the firm Morgan & Morgan of Panama, MMG Fiduciaria, with lawyers from Banco Improsa of Costa Rica and with lawyers from Banco Promerica Banpro of Nicaragua.