International law firm Hogan Lovells recently represented the Overseas Private Investment Corporation (OPIC), the U.S. Government’s development finance institution,  in the extension of a US$20 million secured loan facility in favor of Bien Para Bien (BPB) in Mexico.

OPIC’s loan, repayable over approximately seven years, will be used by BPB as part of a project to originate and fund a series of secured loans to small and medium sized enterprises (SME) in Mexico. The loans are expected to have a developmental impact by expanding the availability of growth capital for SMEs in Mexico and expanding BPB’s ability to offer loans to SMEs backed by residential mortgages. Additionally, there will be technical assistance focused on capacity building and utilization of best practices.

A non-bank financial institution, BPB uses residential mortgages as collateral to offer financing to SMEs across Mexico. Many of BPB’s clients are small businesses, including professionals such as dentists and doctors, looking to start or expand their practices. These clients utilize their residential mortgages as collateral to secure a loan for these often home-based businesses. 

New York based partner Rick Martinez represented OPIC with SOLCARGO serving as Mexican counsel.