Ricorp Titularizadora issues the CIFI Securitization Fund for US$100 million
Antiguo Cuscatlán, December 15, 2021. The series A of the securitization fund for Corporación Interamericana para el Financiamiento de Infraestructura, S.A. (CIFI) has been successfully placed in the primary market this day for US$25 million, which is the first placement of a total authorized amount of US$100 million.
The El Salvador Stock Exchange welcomes CIFI, the first Panamanian company to issue securities in the Salvadoran stock market through securitization; this new fund reaffirms the strength of our stock market to access financing with competitive conditions that meet the objectives and financial projections of companies.
“The securitization figure offers companies competitive financing, and since they are publicly offered securities, it makes available to investors all relevant information on the issue and the administration of the Fund. The issue placed today was structured in such a way that it has the most attractive characteristics for local and foreign investors”. This Fund represents an issue of securities for US$100 million, making it an efficient option for CIFI’s financial needs, said Valentín Arrieta, General Manager of the El Salvador Stock Exchange, who took the opportunity to welcome them to the stock market.
Securitization in our country has become an efficient funding tool that allows companies to obtain financing by selling or assigning in exchange for cash, those assets of the company that are likely to generate income in the future. “Over the years, securitization has allowed different productive sectors to obtain resources to carry out new projects, especially the private sector. Since 2010, when securitization began in our country, more than US$ 1,505.84 million has been channeled”, Valentín Arrieta concluded.
Remo Bardi, Executive Director for Ricorp Titularizadora commented that “This new securitization of loan portfolio participations for infrastructure development, marks a new step in the evolution of securitized products, as a financing option for entrepreneurs and risk diversification for investors who are looking for investments with good profitability and controlled risk. The creativity and financial innovation of the products structured by RICORP are increasingly contributing to the development of capital markets in the country and the region,” he concluded.
The CIFI Securitization Fund placed the series A, negotiated through the Electronic Trading System of the SEN Stock Exchange in two blocks, one for US$ 16 million and the second for US$ 9 million, both for a term of 180 months, with a credit rating of LEVEL TWO granted by SCRiesgo and Zumma Ratings, both risk rating agencies registered with the Superintendency of the Financial System.
Iván Juárez, General Manager of Atlántida Securities, responsible for the successful placement, adds that “The structuring and placement process of this issue in the El Salvador Stock Market is a milestone because it is the first securitization of a credit portfolio to be placed in the market and the first from a Panamanian originator. For investors it is a new opportunity to access sophisticated instruments with an attractive risk profile in accordance with the current context and an excellent option for the diversification of their investment portfolios”. Finally, he emphasized that “This placement continues to position our market as an attractive option for potential regional issuers, demonstrating the technical capacity of our team and the interest of local and regional investors in this type of alternatives”.
The Representative of the Holders of Securitization Assets under the CIFI Securitization Fund is Lafise Valores Casa de Corredores de Bolsa, an important figure that provides security and protects the interests of investors.
CIFI was established in 2001 as a non-banking financial institution. It has been financing infrastructure and energy projects in Latin America and the Caribbean for over 20 years.
The company has analyzed well over 600 projects and has participated in more than 200 transactions for amounts in excess of US$1.8 billion, making it a leading participant in sustainable infrastructure projects in Latin America, driving the region’s economic development.