Clifford Chance

Clifford Chance advises Colombia-based Credivalores-Crediservicios on US$100 million collateralized credit facility

New York, London: Leading international law firm Clifford Chance has advised Credivalores-Crediservicios S.A. (Credivalores) in connection with a US$100 million collateralized credit facility for a newly created special purpose trust established in Colombia to acquire and hold loans originated by Credivalores' Crediuno credit card business in Colombia. Credivalores is a non-bank financial institution in Colombia in payroll and consumer loans mostly serving the low and middle-income class of Colombia's population.

This innovative transaction includes loans provided directly to a special purpose trust created to purchase loan assets from Crediuno, a credit card that is collected through public utility companies in Colombia. The credit facility includes a novel borrowing structure with features that focus on the verification and auditing of the loan origination process as well as Credivalores' corporate governance.

"This transaction builds on our reputation of developing innovative solutions to meet our clients' needs. We look forward to replicate this and similar financing structures for other non-bank financial companies in Latin America," commented lead associate Luis Maria Clouet.

Capital Markets partner Hugo Triaca added, "We are delighted to have worked on this strategic financing with Credivalores, as a leading non-bank financial institution that plays an important role in expanding access to financial services for low and middle-income families in Colombia."

The Firm's team also included foreign law clerk Jorge Bojalil in New York.