Banco Continental secures a $100 million loan from undisclosed sources.
In a significant development for the financial landscape of Paraguay, Banco Continental has secured a US$100 million syndicated loan, co-arranged by the Dutch development bank FMO and Banco Latinoamericano de Comercio Exterior (Bladex). The loan, which has an A/B structure of five and three years respectively, will provide Banco Continental with increased liquidity to support its commercial banking operations, including trade finance and structured financing solutions in Paraguay and the broader Latin American region.
Bladex, a specialist in trade finance and syndicated loans across Latin America and the Caribbean, acted as the sole lead arranger and bookrunner for this term loan facility. FMO's involvement aligns with its strategy to promote sustainable economic growth by supporting financial institutions in emerging markets.
While the publicly available documents do not offer explicit details on the loan's end-use, this type of syndicated facility usually supports general corporate purposes, expanding Banco Continental’s capacity to finance trade, infrastructure projects, or other corporate investments that contribute to Paraguay’s economic development.
The A-loan, amounting to US$47 million, is provided by the Belgian Investment Company for Developing Countries (BIO), Triodos Investment Management, and the FMO. This portion of the loan will be used specifically for on-lending to small and medium enterprises. Teresa Gaona, director of Banco Continental, states that the loan facilities will help diversify funding sources and support sustainable investments.
The B-Loan, amounting to US$53 million, involves eight other international institutions, but their names are not disclosed. This part of the loan will be used to support the general growth of Banco Continental's loan portfolio. The success of the 2021 transaction indicates the confidence of participating investors in Banco Continental's ample experience and solvency.
This syndicated loan builds upon a US$50 million syndicated term loan, co-arranged by FMO and Bladex for Banco Continental in 2014. The 2021 facilities, therefore, represent a significant increase in funding, demonstrating the continued support of international partners for Banco Continental's growth and development.
In conclusion, the US$100 million syndicated loan will play a crucial role in strengthening Banco Continental's financial capacity, facilitating financing for sustainable investments, and supporting job creation. This development contributes to Paraguay's economic and social development, further integrating the country into the global financial network and fostering trade and business growth in the region.
[1] For further details, please refer to the official press release from FMO and Bladex.
Banco Continental, with this US$100 million syndicated loan, can potentially expand its digital trade operations by offering more competitive digital trade finance solutions in Paraguay and the broader Latin American region. The increased liquidity from this loan can also enable Banco Continental to provide digital financing solutions for small and medium enterprises (SMEs) in these regions, contributing to their economic growth.
