Development Finance

International development finance and political risk insurance is a core practice of Hills Stern. More than 15 years ago, Hills Stern opened its doors to provide first-in-class legal support to clients, including private investors and institutional lenders, investing in developing and emerging market economies. We offer big firm experience with entrepreneurial flexibility and efficiency. Areas of expertise include: Debt financing. Hills Stern has represented clients on a wide range of debt financing, including project lending financial intermediary lending. Examples include:

• Representing real estate developer using a Mauritius holding-company structure to finance operating companies located in multiple East African countries. Holding company applied borrowed funds to debt and equity investments to subsidiaries to finance the acquisition and development of real estate.
• Representing US hotel developer in connection with a $200 million multi-lender financing for a 5-star eco-hotel in the Caribbean.
• Representing hotel developer in connection with a $100 million multi-lender financing for a 5-star hotel in Central America.
• Representing an East African project developer in connection with a $200 million development finance loan to develop and operate student housing in Nairobi.

US Government guarantee lending programs and international development finance institutions, including:

• US International Development Finance Corporation (and its predecessor, Overseas Private Investment Corporation)
• Export-Import Bank of the United States

Political risk insurance, including:

• Representing a development finance institution providing political risk insurance to a lending group toll road development in Central America
• Representing a development finance institution in connection with insurance coverage for a multi-country gas pipeline

Bank capitalization; financial intermediary lending; on-lending transactions, including loans and other investments in banks and non-bank financial institutions. Examples include:

• Representing US sponsor in development of loan guaranty structure to expand access for manufacturers to long-term working capital through local banks in Botswana, including negotiation, documentation and closing of a $250 million master guaranty facility

• 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 finance company on $25 million in loans to Indian microcredit institutions

Fund leverage, including as outside counsel for one of the largest providers of debt capital to funds that operate in emerging markets. Examples 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. Hills Stern has represented a wide range of for profit and not for profit companies pursuing triple bottom-line returns in emerging markets, 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. Infrastructure and renewable energy. Examples include:

• Representing 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
• Representing developer on financing in connection with financing for development of a distributed power generation facility in East Africa using bio-gasification
• 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