Bladex leads successful syndication of a US$127,500,000 Senior Unsecured Dual Tranche Term Loan Facility for Forum

Rhea-AI Summary

Banco Latinoamericano de Comercio Exterior (Bladex; NYSE: BLX) announced the closing of a US$127.5 million dual tranche senior unsecured syndicated loan for Forum Servicios Financieros, S.A. This loan comprises a US$78 million 3-year tranche and a US$49.5 million 4-year tranche. The deal, oversubscribed at 1.8x, facilitates Forum's portfolio growth and debt repayment. Established in 1993, Forum serves the auto-financing industry in Chile and has total assets of US$1.8 billion.

Positive

• Oversubscribed loan facility amount increased from US$70 million to US$127.5 million.
• First international syndicated loan for Forum, enhancing its market credibility.
• New banking relationships established, diversifying Forum's financing sources.

Negative

• None.

PANAMA CITY, Dec. 29, 2021 /PRNewswire/ -- Banco Latinoamericano de Comercio Exterior, S.A. ("Bladex" or the "Bank"; NYSE: BLX) announced today the successful closing of a US$127.5 million dual tranche senior unsecured syndicated loan, consisting of a US$78 million senior unsecured 3-year Tranche A Loan and a US$49.5 million senior unsecured 4-year Tranche B Loan (the "Facility") for Forum Servicios Financieros, S.A. ("Forum" or the "Company"). Bladex acted as Sole Lead Arranger and Bookrunner and shall act as the Administrative Agent for the Facility.

Stablished in 1993, Forum is the leading player in the auto-financing industry in Chile. The Company is a wholly owned subsidiary of BBVA and provides loans and auto-leases to natural persons and companies for the purchase of vehicles (light and heavy) and motorcycles. The Company has US$ 1.8 billion in total assets, and US$ 331 million in total equity and is rated AA- (local) by Fitch.

The deal constitutes the first international syndicated facility for Forum. Proceeds from the Facility will be used for portfolio growth and repayment of existing indebtedness.

Sebastián Barbarossa, Forum's CFO, stated: "This financing demonstrates once again the strength of the company and the confidence that the market has in Forum. We are very happy with the successful syndication that has been achieved, initiating new relationships with most of the banks, which will allow us to further diversify of our sources of financing in the international markets".

The transaction attracted commitments of financial institutions from Central and South America, the Caribbean, Europe, Asia, and the United States, of which many represent new banking relationships for Forum.  There was a 1.8x oversubscription, which allowed the Company to upsize the facility amount to US$127.5 million from its original target of US$70 million.

Carlos De Alvear, Regional Head of South America and Mexico of Bladex, stated: "Bladex is very pleased to have successfully executed the first international syndicated loan for Forum, which provides the Company access to new banking relationships and medium-term funding. This transaction marks the first syndicated loan arranged by Bladex in Chile and adds to Bladex's credentials of over 60 transactions arranged in Latin America, highlighting the Bank's distribution capabilities and its access to a wide network of regional and international financial institutions."

Bladex, a multinational bank originally established by the central banks of Latin-American and Caribbean countries, initiated operations in 1979 to promote foreign trade finance and economic integration in the Region. The Bank, headquartered in Panama, also counts with offices in Argentina, Brazil, Colombia, Mexico, and the United States of America, supporting the regional expansion and servicing its customer base, which includes financial institutions and corporations.

Bladex is listed on the NYSE in the United States of America (NYSE: BLX), since 1992, and its shareholders include: central banks and state-owned banks and entities representing 23 Latin American countries; commercial banks and financial institutions; and institutional and retail investors through its public listing.

For further information, please contact:

Bladex:
Felipe Suarez – SVP, Head of Loan Structuring & Syndications
E-mail address: ir@bladex.com
Head Office Address:  Torre V, Business Park, Ave. La Rotonda, Urb. Costa del Este,
Panama, Republic of Panama

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SOURCE Banco Latinoamericano de Comercio Exterior, S.A. (Bladex)

FAQ

What is the amount of the loan facility closed by Bladex for Forum?

Bladex closed a dual tranche loan facility of US$127.5 million for Forum.

What are the specific amounts and terms of the loan tranches?

The facility includes a US$78 million senior unsecured 3-year loan and a US$49.5 million senior unsecured 4-year loan.

How was the loan facility received in the market?

The loan was oversubscribed by 1.8x, indicating strong market interest.

What will the proceeds from the loan be used for?

Proceeds will be used for portfolio growth and repayment of existing debt.

What is the significance of this loan for Forum?

This is Forum's first international syndicated loan, enhancing its access to new banking relationships.