BLP has advised the International Finance Corporation (IFC) on its participation with Banco La Hipotecaria in a $50 million funding to support the growth of residential mortgage lending to low and middle-income families in Panamá and El Salvador. In this cross-border transaction, governed by the laws of New York, Panamá, and El Salvador, the firm acted as local counsel to the IFC in El Salvador, reviewing the facility agreement under local law as well as the planning, negotiation, and execution of local securities, including preparation of all documentation and securities’ formalization.
This transaction is highly relevant for El Salvador and Panamá. In El Salvador, the country is facing a major housing crisis with insufficient or inadequate housing prevailing in cities across the nation. The investment will improve the quality of life for underprivileged families by promoting better housing conditions. Furthermore, approximately 50% of the investment gives priority to female heads of households.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. BLP has advised the IFC in transactions across the Central American region.