For IDB Invest, legal support enables impact investments that benefit society

When IDB Invest granted a $40 million financing package to Honduras-based textile companies Elcatex and San Juan Textiles in June 2022, the deal was about much more than just financial returns. As a multilateral development bank, IDB Invest is guided by its mission to promote the economic development of Latin America and the Caribbean through the private sector. It finances projects to advance clean energy, modernize agriculture, strengthen transportation systems, and expand access to financing within sectors of society that are typically ‘unbanked’.

The Elcatex deal is a case in point. With funds earmarked for more efficient machinery, among other things, the project will help increase production, boost exports, encourage the creation of 2,000 new jobs, and reduce energy and water use. IDB Invest is also advising the company on the development of a net-zero strategy (cutting greenhouse gas emissions to as close to zero as possible). Together, this project will contribute to six United Nations Sustainable Development Goals (SDGs).

Since early 2018, Hogan Lovells has been supporting IDB Invest on legal and transactional aspects of its work, totaling around 20 transactions representing close to $2 billion of financing. We bring to this five-year relationship several qualities that time and again deliver value and efficiency for our client.

Solution

Truly getting to know our clients is central to all we do. With IDB Invest, our team has invested almost 50 nonbillable hours supporting with training on its standard form of loan agreement. We’ve also developed deep institutional knowledge of IDB Invest—in essence, becoming part of their team—which helps us anticipate needs and advise on deals more effectively.
Hogan Lovells also brings to the relationship an unparalleled international footprint, with legal experts based in 45+ locations worldwide, including a strong footing in Latin America. Our core client team consists of almost 20 lawyers from six offices, negotiating and drafting legal documents in four languages: English, Spanish, Portuguese, and French. Diversity within our team is fundamental to providing diversity of thought and finding the best solution for IDB Invest’s challenges.

Finally, like IDB Invest, we help drive inclusive and sustainable development so people and the planet can prosper. For example, we contribute to achieving the UN’s SDGs and participate in other responsible business initiatives. We also support our clients in navigating environmental, social, and governance (ESG) issues. Drawing on this experience helps us expertly serve IDB Invest, positioning our advice within the wider ESG landscape to identify risks and opportunities.