Andrews Kurth represented the Inter-American Development Bank (IDB) in the issuance of a guarantee in favor of a consortium of lenders that included the Bank of Nova Scotia, the Bank of Tokyo-Mitsubishi UFJ, Ltd. and the Banco Nacional de Panama (the state-owned bank of the Republic of Panama).
Closed on January 29, 2013, this was the first such guarantee issued by IDB with the participation of the public sector and the private sector financing departments of the multilateral institution. The transaction involved the establishment by the commercial lenders of a $265 million credit facility to facilitate the purchase, exchange and reissuance by the borrower (a special purpose Panama trust) of certain government-issued instruments (due to expire January 31, 2013) for the financing of Panama’s road infrastructure projects. The Government of Panama issued a counter-guarantee for the benefit of the IDB.
