BBVA Panama in three hospital financings

Arias, Fábrega & Fábrega advised Banco Bilboa Vizcaya Argentaria (Panama), S.A. (BBVA) in connection with a receivable purchase facility granted by the bank, as assignee, to a consortium created by Omega Engineering and Circacet Corp, called Omega Ciracetas assignors.

Under this facility, BBVA purchased all of Omega Circacet's payment rights, on a limited recourse basis. These rights arise from three separate administrative contracts entered into by the consortium. The contracts provide for the design and construction of hospitals in Panama's countryside, at Río Sereno, Llano Cartí and Puerto Caimito, respectively.

The Ministry of Health issued "no objection" certificates (certificados de no objection) to document BBVA's acquisition of the payment rights. The General Comptroller countersigned the certificates, creating evidence of an irrevocable payment obligation by the Republic of Panama for the amounts stated in each certificate.

In December 2011, ARIFA closed the financing of Hospital Luis "Chicho" Fábrega. In the context of that financing, ARIFA drafted the government regulation that has been used as the legal framework for the financing of the design, construction and equipment of more than 15 hospitals in different parts of the country, awarded by the Ministry of Health of Panama to multiple local and international construction companies. These projects represent, in total, the most important public infrastructure healthcare investment in Panama for more than a decade.