DFC, the U.S. government’s international development bank, provides $1 billion in political risk insurance (PRI), while CAF is issuing two letters of credit (SBLC) for up to $200 million. The combination of DFC’s PRI and CAF’s SBLCs strengthens the credit risk supporting the transaction, catalyzing additional investment in conservation and ecosystem restoration efforts in the Lempa River watershed in El Salvador.
BLP advised DFC on sovereign issuance documents, legislative and governmental authorizations, and the review of conservation project documents, including the preparation of the conservation trust.
On the other hand, BLP also advised CAF on structuring the letters of credit, drafting of the liquidity contingent loan and guarantee agreement, and reviewing legislative authorizations.
This sovereign debt management transaction is the most ambitious in El Salvador’s history. Its tremendous environmental importance joins the country’s most ambitious debt conversion to form the most beneficial watershed conservation ever completed. All savings generated by the transaction will be applied to the Lempa River Conservation and Restoration Program over the next 20 years, supporting national efforts to conserve the Lempa River watershed.
Partner Zygmunt Brett led the transaction assisted by directors José Góchez and Fernando Farrar and supported by associate Andrea Malera.
Our team in this transaction:
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Zygmunt Brett
Partner
El Salvador
E-mail
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José Góchez
Director
El Salvador
E-mail
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Fernando Farrar
Director
El Salvador
E-mail
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Andrea Melara
Associate
El Salvador
E-mail
