The Inter American Investment Corporation (IIC), a branch of the Inter-American Development Bank (IDB) that deals with the private sector, has approved a loan for the Dominican governmental commercial bank, Banreservas for US$130 million to support its clients’ import and export activities. The operation is the largest syndication in terms of number of participants in the history of the IIC.
BanReservas is the largest financial institution in the country, with US$8.66 billion in assets representing 33.5% of market share; US$6.05 billion in loan portfolio, accounting for 37.8% of market share; and US$6.61 billion in deposits, representing 34% of the market. This market share is the result of a broad customer base, which holds a loan portfolio of foreign trade amounting to more than US$1 billion.
A total of 14 financial entities participated in the B Loan within the framework of the Trade Finance and Facilitation Program (TFFP) and Master Facility Agreement (MFA), which is administered by the IIC. The TFFP is an IDB Group program aimed at promoting development and economic growth through the expansion of trade finance to banks in Latin America and the Caribbean.
The total amount of the B Loan was US$110 million, which was beyond the initial objective of US$80 million. This is in addition to loan A for US$20 million.
With these resources, the Banreservas plans to extend financing to its more than 3,300 corporate and business clients and 55,000 small business clients, according to a press release from the IDB.
The loan incorporates eight international financers for Banreservas while at the same time it obtained extensions from previous investors. The Wells Fargo Bank acting together with the CII as a placement agency for the syndicate contributed US$21 million. Other bank participants are the Bank of China Limited Panama Branch, Commerzbank Aktiengesellschaft and JP Morgan Chase Bank, AKA Ausfuhrkredit-gesellschaft, Apple Bank for Savings, BAC Florida Bank, Bancaribe Curacao Bank, Banco de Credito e Inversiones, Bankinter, Banque de Commerce de Placements, CoBank, Federated Project and Trade Finance Core Fund and Taiwan Cooperative Bank.
http://www.iadb.org/en/news/news-releases/2016-04-05/iic-support-foreign-trade-in-dominican-republic,11433.html
