Morgan & Morgan advised Grupo Financiero BSC in a US$700 million acquisition finance

Morgan & Morgan acted as Panama legal counsel to Grupo Financiero BSC (formerly, Inversiones Cuscatlán Centroamérica, S.A.) (“Grupo BSC”) and Banco La Hipotecaria, S.A. (“Banco La Hipotecaria”), a member of Grupo BSC’s economic group, in connection with two credit facilities totaling US$700 million to finance part of the purchase price for the acquisition by Banco La Hipotecaria of 100% of the shares of Banistmo, S.A. (“Banistmo”) from Grupo Cibest, S.A.

Banco Santander, S.A. and Bladex, Inc., acted as joint lead arrangers for both credit facilities.

Banistmo, S.A., is a Panamanian corporation operating under a General Banking License, operating in Panama since 1984. It is currently one of the country’s leading private banks by deposits and loan portfolio. Grupo BSC is a Central American regional financial group with banking and finance operations in El Salvador, Guatemala, and Honduras.

The transaction was led by partner Ramón Varela and associate Perla Piña. The team actively advised Grupo BSC and Banco La Hipotecaria throughout the transaction, from the negotiation and execution of the credit agreements and security documents throughout closing and notices to the Panamanian banking regulator.