US$250 million financing of the Panamanian Social Security Administration's Hospital City

ARIAS, FABREGA & FABREGA acted as counsel to HSBC Bank (Panama), S.A., as assignee and administrative agent, in a US$250 million and Revolving Limited Recourse Receivables purchase agreement for Construcciones Hospitalarias, S.A., a subsidiary of Fomento de Construcciones y Contratas, S.A. Besides HSBC Bank (Panama), there are other lender banks as assignees.

Construcciones y Contratas will assign all of its payment rights arising from this agreement to the US$517 million design and construction contract that will be used to build Hospital City (Ciudad Hospitalaria). Construcciones y Contratas is building the hospital in conjunction with Caja de Seguro Social (CSS), the Panamanian Social Security Administration.

Ciudad Hospitalaria is the largest-ever infrastructure project undertaken by Caja de Seguro Social. It is also the first – and only – turnkey contract that CSS has entered.