IDB Invest, a member of the IDB Group, has provided a financial package of up to $106.8 million to Tanner Servicios Financieros S.A. (Tanner), with a 5-year tenor. The funds from this operation will be used to finance small and medium-sized companies (‘SMEs’) through factoring operations in Chile. The financial package is comprised of $36 million from IDB Invest and $50.8 million from commercial banks and institutional investors, including Bladex, Bancaribe, Banco de Occidente, BDH and responsibility. The deal will be co-financed by the OPEC Fund for International Development for $20 million.
The resources will allow Tanner to access financing and diversify its funding sources and generate new commercial relationships with the mobilisation of approximately $70 million that will accompany IDB Invest’s resources.
As part of the support to Tanner, IDB Invest will finance an advisory and knowledge service that aims to improve the offering of its products and services to SME clients. Legal advisers to IDB Invest were Hunton Andrews Kurth LLP and Contreras Velozo.
Speaking to Oscar Contreras Blanco at Contreras Velozo about his experience with IDB and this specific deal, he said: “I have been IDB’s attorney for more than 30 years and I have assisted the client in several key deals in Chile, first as Interamerican Investment Corporation’s (IIC) attorney and then as IDB’s counsellor. IIC/ IDB had financed Tanner from 2017 onwards and we have been retained as attorneys in all those contracts. The loan agreement was executed on December 2020 and the proceeds of the loan will be used by Tanner to finance small and medium-sized companies (‘SMEs’) through factoring operations in Chile.”
Oscar was the leading partner in this deal working together with associate Magdalena Paul. “We worked closely with IDB’s in-house attorney Mrs Lucía Abreu. As in all international finance contracts, expertise in conflicts of laws and litigation is required. Indeed, since the loan agreement is subject to U.S. law and jurisdiction and the promissory notes issued in connection with the loan are subject to Chilean law and jurisdiction, it was important to assess how the loan agreement will work in the event of default in both jurisdictions.”
