Hogan Lovells has advised the Republic of Ecuador in the negotiation of a multi-million-dollar facility agreement that was executed on 25 March 2014 by the Japan Bank for International Cooperation (JBIC) and the Ministry of Finance of Ecuador.
Under the agreement, JBIC granted a loan to be used by RTV Ecuador, the state-owned television and radio network, to upgrade its systems and equipment, primarily with Japanese goods and services provided by qualified exporters.
The credit facility consists of a fixed-interest tranche and a variable interest tranche and is anticipated to be the prelude to much larger investments by JBIC in Ecuador.
The credit facility is the first to be extended by JBIC to Ecuador since 2007, reflecting the recognition by JBIC of the stability and consistent growth of Ecuador’s economy and the growing acceptance of Ecuador by international creditors, as Japan’s investments in Latin America have historically tended to focus on more stable credit risks, such as Colombia and Mexico.
The Hogan Lovells team was led by Miami partner Miguel Zaldivar, along with Miami associate Gaston Fernandez.
The closing of this transaction was followed by a formal signing ceremony in Tokyo, which was attended by Ecuador’s undersecretary of public credit of the Ministry of Finance William Vasconez and directly witnessed by Rafael Poveda, Ecuador’s co-ordinating minister of strategic sectors.