Latham Advises Newmarket Capital on Inter-American Development Bank’s US$1 Billion Portfolio Risk Transfer

Latham & Watkins has advised Newmarket Capital on the first significant risk transfer by the Inter-American Development Bank (IDB), a multilateral development bank serving as the main source of development financing for Latin America and the Caribbean. As part of the transaction, called Scaling4Impact, a US$1 billion portfolio of IADB Invest, the IADB’s private sector arm, was securitized, consisting of a tranched structure with an US$870 million senior tranche, a US$100 million mezzanine tranche, a portion of which was sold to international investor Newmarket Capital and the remainder insured by two insurers, and a US$30 million junior tranche retained by IDB Invest.

The Scaling4Impact securitized portfolio includes assets from 20 countries and 10 sectors, such as corporates, infrastructure, energy, and financial institutions, permitting up to US$500 million in additional lending capacity for new development projects loans in Latin America and the Caribbean.

The Latham team was led by Paris/London corporate partner Suzana Sava-Montanari, with partner Roberto Reyes Gaskin, assisted by associate Jaime Hall and London associate Alexia Leckie.