Consortium advises Banco Agromercantil de Guatemala on US$ 44 million loan

Banco Agromercantil de Guatemala S.A. and Mercom Bank Ltd granted a syndicated loan to San José S.A. and Extraceites S.A. in order to restructure several lines of credit to finance its operations in Nicaragua.  San Jose has cultivated more than 5,000 hectares of African Palm and its affiliate Extraceites has just started operations in order to extract oil from the palm, process it and sell it.

The transaction required a previous due diligence on the assets that would serve as guarantee of the credit facility: more than 100 properties located in the east coast of Nicaragua, in El Rama, in the Autonomous Region of the South Atlantic. Real estate in such region is subject to special rules regarding the titles, possession, etc. which require a particular expertise in the title search and documentation. There was also the need of some due diligence on the 2 co-borrowers: San Jose and Extraceites and the permits of the latter, which operates under a Free Zone Regime.

Partner Rodrigo Taboada led the team at Consortium Legal together with senior associate Carlos Castrillo. 

In-house lawyers :

Ruben Amorin y Luis Miguel Briz (Banco Agromercantil de Guatemala S.A.).