RISK MITIGATION: What are Updates & Proposals on Risk Mitigation Products?

Product Name A/B Loan
Link to Product Website
Provider Name CABEI (Central American Bank for Economic Integration)
Product Definition In an A / B Loan, CABEI subscribes a credit agreement and defines the level of participation of other institutions. Under this type of loan structure, CABEI as lender of record, transfers certain rights and obligations under the underlying credit agreement to third parties, including the privileges and immunities of multilateral entity status.


The participating banks, who take shelter under the coverage of CABEI as multilateral bank, are eligible to have a preferred creditor status, obtain an implicit country risk coverage, receive exemption from restrictions on convertibility of currency, exemption from certain debt provisions, and exemption from withholding taxes . These benefits can attract a greater number of investors interested in projects within the region.

Requirements:

1) Formal letter of credit application.
2) Detailed project description including location and area of ??influence, maps,
initial plans and designs.
3) Feasibility study.
4) Financial model including:
- Detailed description of assumptions;
- Projected cash flow, balance sheet and income statement for a period equivalent to
the life of the loan requested;
- Profitability of the project with and without financing (NPV and IRR);
- Debt Service Coverage Ratio (principal + interest)
- Sensitivity analysis.
5) Audited financial statements of the company, if any, and the developer, if applicable.
6) Legal constitution of the borrowing company.
7) Details of shareholding.
8) Organizational chart.
9) Execution modality.
10) Copies of relevant contracts.
11) Copies of relevant permits.
12) Summary execution schedule.
13) Overall investment plan.
14) Any other information required during the due diligence process.

Product Type Co-financing
Defined Risks Covered n.a.
Eligible Form of Investments Bank Loans
Non-Bank Loans
Eligible Currency of Underlying Investment Covered by this Product Both local and foreign currency
Eligible Countries & Regions n.a.
More on Eligible Countries
Eligible Applicants All
Eligible Sector No Specific Sector
Maximum Tenor 10+ to 15 years
Max. Absolute Amount (USD) 0 to 50 MM
Max. % of Project Costs Covered Max./under 25%
Max. % of Export Content Covered Max./under 50%
Fees Market-based
n.a.

Other Conditions Sovereign Counterguarantee: No
Anti-Corruption and Governance Standards: Yes
Environmental standards: Yes
Social standards (incl. Human Rights Standards; Labor Rights Standards): Yes
Others:
Source(s) n.a.
For more information, contact
Email: gortiz@bcie.org
Attachments n.a.
Additional Links n.a.
Deals n.a.

Provider Name CABEI (Central American Bank for Economic Integration)
Institution Type PUBLIC: Multilateral Development Bank
Ownership Member countries
Head Office CABEI Headquarters, Boulevard Suyapa. Tegucigalpa, Honduras.
Provider Home Country Honduras
Rating n.a.
Main Risk Mitigation Products n.a.
Attachments n.a.
Additional Links www.bcie.org/?cat=8&title=Products%20and%20Services&lang=en
www.bcie.org/?cat=12&title=Approved%20Operations&lang=en
www.bcie.org/?cat=1020&title=News&lang=en
Entered On: 05/21/2013 at 10:04 AM
Updated On: 05/21/2013 at 10:19 AM