Dentons Paz Horowitz | View firm profile
Dentons Paz Horowitz acted as legal structuring counsel in a USD 34 million financing transaction granted to Banco de Machala, in a joint operation with BlueOrchard Finance Ltd., Triple Jump, and Green Capital Partners.
This transaction supports the bank’s growth strategy and strengthens its position within the Ecuadorian financial system, while also reaffirming the continued interest of international investors in the local market.
The transaction was led by Banking and Finance partners Rocío Córdova and Gabriel Solís Vinueza, who headed a multidisciplinary team responsible for the comprehensive legal structuring of the deal, ensuring its validity, enforceability, and proper execution in accordance with Ecuadorian regulations and the financial institution’s internal policies.
Scope of legal advice
Dentons Paz Horowitz’s role included a thorough review and coordination of all key legal aspects of the transaction, including:
- Analysis of the financing structure to determine the type of credit facility, review the amount, term, interest rate, fees, and other financial conditions, as well as assessment of the use of proceeds and identification of obligors and guarantors.
- Legal due diligence of the borrower, including verification of Banco de Machala’s legal existence, good standing, and legal capacity, review of its corporate purpose, bylaws, amendments, appointments, powers of attorney, and compliance with corporate obligations before regulatory authorities.
- Corporate authorizations, through the preparation and review of corporate resolutions, board minutes, and validation of the legal representative’s authority to execute the credit and security documentation.
- Contractual documentation, including the review, negotiation, and structuring of the credit agreement and ancillary documents, with particular attention to financial covenants, events of default, acceleration provisions, and penalties.
- Security structuring, through the analysis and design of the collateral package in accordance with Banco de Machala’s requirements.
- Regulatory and banking compliance, ensuring adherence to applicable regulations issued by the Superintendence of Banks.
- Conditions precedent and disbursement, identifying and verifying compliance with pre-disbursement conditions, reviewing supporting documentation, and providing legal support throughout the process.
- Issuance of the legal opinion, covering the validity and enforceability of the credit documents, the borrower’s capacity and due representation, compliance with corporate authorizations, and the validity and perfection of the security interests.
With this transaction, Dentons Paz Horowitz reaffirms its experience in complex and cross-border financial transactions, as well as its commitment to supporting financial institutions and investors in developing solid, efficient structures aligned with market best practices.