Banpro DPR - Supporting middle-sized agroindustry producers in Nicaragua (IDBI-12582-01)

Countries
  • Nicaragua
Where the impacts of the investment may be experienced.
Financial Institutions
  • IDB Invest
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jun 17, 2019
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Banco de la Produccion, S.A.
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 40.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 150.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ IDBI website

Updated in EWS Jun 10, 2019

Disclosed by Bank May 17, 2019


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Project Description

The objective of this transaction is to increase access to financing for small and medium sized agroindustry producers in Nicaragua. Banco de la Produccion, S.A. ("Banpro") will create its Diversified Payments Rights Program (the "DRP Program") and make an issuance of up to US$150 million. IDB Invest will purchase up to US$40 million in debt instruments under the Program with a tenor of up to 5 years including one year of grace period with a potential extension of up to 2 years. It is expected that the IDB Group will purchase up to US$27 million, and that the China Co-Financing Banco de la Produccion, S.A. Fund for Latin America and the Caribbean - a fund under IDB's administration - will purchase up to US$13 million. Under the DPR Program, Banpro (the "Sponsor") will sell all its rights over its existing and future Diversified Payment Rights ("DPR") to a Cayman Island Vehicle, NIC FLOWS SPV, Ltd., (the "SPV"). The proceeds from the DPR Program will be channeled by the SPV to Banpro as a payment for the DPRs sold. 

Investment Description
  • IDB Invest
Private Actors
Contact Information

Client Contact Name: Melisa Castro Rivas
Title: Finance Manager
Phone number: + (505) 2255-9595 (Ext. 33019)
E-mail address:
MelisaCastro@banpro.com.ni

 

For inquiries and comments to IDB Invest, contact: IDB Invest’s Communications Group E-mail: divulgacionpublica@iadb.org. For project inquiries, including environmental and social questions related to an IDB Invest investment, please contact the client or the IDB Invest using the contact information provided above. As a last resort, affected communities have access to the IDB Invest Independent Consultation and Investigation Mechanism. Tel: +1 (202) 623-3952 / Fax: +1 (202) 312-4057 / Address: 1300 New York Ave. NW Washington, DC. USA. 20577 / E-mail: mecanismo@iadb.org or MICI@iadb.org.