GarciaBodan advised Cathay Inc. on the structuring of a US $150 million industrial joint venture aimed at strengthening and expanding its manufacturing platform in Nicaragua.
The process was led by our Regional Managing Partner, Terencio García, and our Law Clerk, Avril Castillo, who headed the advisory work on the corporate, contractual, financial, and regulatory aspects associated with this significant investment in the country’s industrial sector.
The transaction contemplates the development and consolidation of productive capacity in the textile sector, where the group already operates a vertically integrated plant dedicated to the production of home textiles for duty-free markets in the United States and Mexico.
In parallel, and as part of the broader expansion strategy, GarciaBodan is advising the group on the reprofiling of a US $20 million financing facility, with the objective of aligning the existing debt structure with projected cash flows and the new phase of investment.
The financing reprofiling forms part of a strategy designed to align the group’s operational structure with its growth plans in the country. The advisory work includes the review of credit documentation, evaluation of structural alternatives, and analysis of the applicable regulatory framework under the supervision of the Superintendence of Banks and Other Financial Institutions (SIBOIF), to ensure that any proposed adjustments remain consistent with prudential standards of the financial system.
The scale of the projected investment and its integration with the existing financial structure position this initiative among the most significant industrial developments in Nicaragua’s textile sector, underscoring the level of structural sophistication required for manufacturing expansion projects of this scale and GarciaBodan’s experience in coordinating financing, corporate structuring, and regulatory compliance in complex industrial transactions across the region.