Debt and Equity Finance

Emerging market finance is the core of our practice.  We have helped clients negotiate and close both equity and debt investments around the globe.  Since opening for business in 2005, we have closed more than 100 transactions, working with and across from project sponsors, development finance institutions, export credit agencies, commercial lenders, and other investors.  We offer big firm experience with entrepreneurial flexibility.  Without the overhead and management burdens of large law firms, we can focus our attention and energies on finding solutions to our clients’ problems.

Areas of expertise include:

Infrastructure and renewable energy. Our lawyers have the skills and background to advise on the development and financing of a wide range of infrastructure projects.  Examples include:

  • Advising development finance institution providing political risk insurance to a lending group toll road development in Central America
  • Advising an export credit agency on financing for three grid-connected solar PV power generation projects ranging from 5 megawatts to 15 megawatts
  • Representing a developer on remote or isolated grid-connected mini hydro power generation projects in Sri Lanka
  • Representing developer on all stages of development, financing, and sale of a portfolio of mini run-of-river hydro power generation projects in East Africa
  • Advising developer on financing for distributed power generation in East Africa using bio-gassification
  • Providing advice on debt and equity financing to early stage renewable energy companies developing distributed power in emerging markets
  • Providing policy and legal advice to governments, particularly in the Caribbean, on the development of and conversion to a renewables-based energy economy

Bank capitalization; financial intermediary lending; onlending transactions. We have extensive experience representing clients on loans and other investments in banks, non-bank financial institutions, and other financial intermediaries.  Since 2010, we have closed more than 22 loan transactions involving capitalization of banks and finance companies.   Many of these transactions have been in support of small and medium-sized downstream lending and housing finance.  Examples include:

  • Representing commercial lender on $30 million loan to regulated bank for the origination of residential mortgage loans in Costa Rica
  • Advising finance company on a $65 million credit facility to finance mortgage lending in Middle East/North Africa
  • Representing commercial lender on $10 million facility to expand SME lending in South Africa
  • Representing lender on $10 million financing to expand borrower’s equipment leasing capacity in Honduras
  • Representing finance company on $25 million in loans to Indian microcredit institutions
  • Representing finance company on $10 million to a commercial bank in Turkey

Fund leverage. Few firms match our expertise structuring and implementing fund investment transactions that utilize debt instruments.  We have worked extensively both as in-house counsel and as outside counsel for one of the largest providers of debt capital to funds that operate in emerging markets.  Illustrative transactions include:

  • Representing lender on $85 million fund leverage facility to sub-Saharan Africa buyout fund
  • Representing lender on $65 million fund leverage facility to Latin America real estate fund
  • Representing lender on $85 million fund leverage facility to global frontier markets fund of funds

Impact investment. With our background in cross-border investment and development finance, HSM represents a wide range of for profit and not for profit companies pursuing triple bottom-line returns in emerging markets.  We have advised on a wide range of social impact investment projects including fund creation, structured finance, and subordinated loan facilities.  We also provide program advice and guidance to impact investors to help them streamline their programs and extend their reach and impact.

Government guarantee programs. HSM attorneys have acted on transactions involving U.S. government guarantees provided by OPIC, U.S. Export Import Bank, and U.S. Department of Agriculture as well as by various export credit agencies.

Acquisitions. HSM represents clients on both the buy-side and the sell-side of equity deals.  Illustrative HSM transactions include:

  • Representing entrepreneur shareholders, including CEO, in sale of East African restaurant chain to private equity fund and related employment and earn out arrangements
  • Representing cable and media group in multiple rounds of debt and equity investment totaling more than $100 million by strategic, financial, and development investors
  • Representing investor in $50 million issuance of development capital certificates (referred to as certificados de capital de desarrollo or CKDs) in listed credit opportunities trust in Mexico
  • Representing Central America bank in buy-back of preferred shares, issuance of common shares, and corporate restructuring