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STRUCTURED FINANCE


BICSA offers to their Corporate and Institutional customers a wide range of financial services from structuring and syndicating traditional Corporate Banking transactions to more sophisticated and complex solutions, such as raising capital and debt for project finance transactions: energy, infrastructure, ports / airports, expansion of installed capacity, etc. In addition, BICSA provides permanent support in the syndicated loans offering the services as Administrative Agent.

Our role is to organize or co-originate / structure and syndicate lines of credit, syndicated loans in the medium or long term, mezzanine financing and the like; as well as letters of credit, guarantees and factoring.

What do we do at BICSA´s STRUCTURED FINANCE?

1. Syndicated loans:

  • What are they? They are structured financial products to raise debt and involve one or more debtors and a syndicate (group) of banks.

  • What are they used for? Syndicated loans are usually used to raise large amounts of financing that would hardly be raised with a single bank, with better conditions, and terms that can range from one to fifteen years.


2. Project Finance:

  • What is Project Finance? It is a financing mechanism by which repayment of debt depends on the ability of the project to generate enough cash flows to collect the repayment of the debt, without resorting to the sponsors or shareholders of the project.

  • What is the Project Finance used for? Project Finance funding is adequate in a variety of projects such as:

    • Hydroelectric and Thermoelectric Plants.
    • Wind Farms (Wind Energy).
    • Highways.
    • Urban Transportation (ie Metro).
    • Ports / Airports.
    • Drainage projects and water treatment plants.
    • Geothermal and Biomass Energy Projects.
    • Solar Panel Fields (Solar Energy).
    Syndicated Loans offer to BICSA´s customers a number of benefits, including:

    • The possibility to access larger amounts of financing, without having to negotiate terms and conditions with several banks.

    • BICSA, as leader bank, will be responsible for carrying out the administrative work in a quick and confidential manner.

    • Consolidation of several legal and commercial relationships under a single agreement, as well as their management.

    • The possibility for our customers to access new banking relationships and fund sources, even abroad where the client may not have access to banking relationships.

    Why BICSA?

    BICSA has a unique position to support the financial needs in Panama, Central America and more, thanks to a Structured Finance Department and a solid professional base that assures you:

    • Deep market knowledge, given the presence of more than 40 years of BICSA in Central America and Miami.
    • Customized service and financial solutions tailored to each client and project.
    • Strong qualifications and a fast and efficient performance in the structuring and syndication of facilities.


    3. Administrative Agent Services:

    Since syndicated loans involve the participation of two or more banks, the credit management over the term of the facility requires the services of a specialized entity to assume those functions, easing the facility managing and communication tasks between/among the parties.

    BICSA, as Administrative Agent, offers their customers simplification of the credit and communication management processes.

    • Centralized collection of payments corresponding to disbursements of the facility to subsequently transfer them to the debtor.
    • Centralized collection of repayments of the facility for distribution to the participants of a syndicate, in a pro-rata manner according to the participation commitment in the syndicated facility.
    • Administration and monitoring of the commitments set forth in the contracts of syndicated loans and administration of "covenants".
    • Delivery to the members of the syndicated loan of relevant information received from the debtor (i.e., financial statements, progress reports, etc.)
    • Legal registration of the participants of a syndicated facility.
    4. Capital Raising Services:

    Do you have a project, but you need to raise capital to make it a reality? BICSA offers financial advisory services to investors seeking to finance the capital portion of their projects.

    Our services include:

    • Evaluation of alternative debt and capital structures.
    • Preparation of a confidential Placement Memorandum.
    • Identification and contact with potential borrowers and investors.
    • Analysis of interest rates, subscription criteria, structural problems, covenants, and other terms.
    • Investor supervision / due diligence, and
    • Negotiation and closing of capital raising transactions.