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

Product Name Syndicated Loan
Link to Product Website
Provider Name CABEI (Central American Bank for Economic Integration)
Product Definition CABEI´s Syndicated Loans allow funds provided by a group of banks to be channeled through a single credit facility. In this type of loan, the structuring bank (“Lead Arranger”) is responsible for designing the overall structure of the financing and achieves the integration of other participating banks. An agent bank is responsible for coordinating the monitoring of credit.


The syndicated loan has the main advantage of diversifying the source of funds for a credit facility, allowing participating banks to commit funds towards a desired asset, without having to concentrate exposure to the same in the form of a large monetary commitment.   Additionally, through the assignment of an Agent Bank the borrower enjoys greater agility and flexibility in the negotiation and operation of the credit facility, since it only deals with one bank that represents the syndicate.

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) 100+ to 250 MM
Max. % of Project Costs Covered Max./under 25%
Max. % of Export Content Covered Over 85+%
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: 11/06/2007 at 04:45 PM
Updated On: 05/21/2013 at 09:35 AM