Instacredit issues $150m corporate bonds

The issue will be divided into several placements under a revolving program for a term not to exceed 10 years, supported by its loan portfolio.

Instacredit offers personal loans and operates in Costa Rica, Panama, Nicaragua and Mexico.

The company was advised on the issuance by Central American law firm García & Bodán, whose work included 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 three countries, the law firm said.  

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.

García & Bodán also advised 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 the law firm’s partner Carlos Gómez Fonseca, 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.

The firm counseled Instacredit in conjunction with the legal teams of MMG Bank Corporation of Panama, Panamanian law firm Morgan & Morgan, and MMG Fiduciaria, with lawyers from Banco Improsa of Costa Rica and with lawyers from Banco Promerica Banpro of Nicaragua.