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Development Finance


Expertise > Global Expertise > Banking and Finance > Development Finance
International Financial Centres (IFCs) play a vital role in moving capital from developed to developing countries, many of which would not be able to benefit from overseas investment without the stability and neutrality achieved by the inclusion of an IFC in the financing structure. 

Overview

The use of an IFC to hold vital assets and enter into contracts can provide comfort and certainty to lenders, enabling a developing country or a country experiencing unrest to attract investment where otherwise it might not be possible. 
 
The BVI offers a stable political foundation, a strong regulatory framework and a legal system based on English law; characteristics that reduce vulnerability to issues arising from political or economic volatility. If financing and/or project entities are incorporated in a trusted IFC, then disputes as to governing law and differences in interpretation are less likely and all stakeholders are on an equal, neutral footing. 
 
Harneys has advised on a number of ground-breaking transactions over the past year, many of which have included global emerging or frontier markets. We have recently advised Proparco, a subsidiary of the Agence Française de Développement, in its proposed investment (by way of purchase of convertible loan notes) in a company registered in Guatemala which offers pay-as-you-go solar energy services to rural communities. 
 
Other recent development finance experience includes:
 
  • Advising The Engineering and Development Group and the consortium group redeveloping the Queen Alia International airport in Jordan, on the US$473.8 million expansion financing being provided by a syndicate led by the International Finance Corporation and Europe Arab Bank.
  • Advising Standard Bank on the project financing of the Kinangop Wind Park in Kenya, the largest wind park investment in sub-Saharan Africa and the first renewable energy commercial project in East Africa.  The structure involved the Norwegian Investment Fund for Developing Countries (Norfund) and The African Infrastructure Investment Fund as shareholders of the borrower.
  • Acting as Cyprus and BVI counsel to the European Bank for Reconstruction and Development (EBRD) on a line of credit to a subsidiary of Dataline LLC, a leading Russian IT consulting, support and outsourcing company.
  • Acting for a syndicate of lenders, including Overseas Private Investment Corporation, Inter-American Development Bank, Export-Import Bank of the United States and Export Development Canada on a facility for the redevelopment of Mariscal Sucre International Airport in Quito, Ecuador.  We subsequently acted in relation to the amendment of the facility.
  • Advising the International Finance Corporation and Corporacion Andina de Fomento (CAF) in relation to the equity funding of Avantel S.A.S., to finance the development and expansion of an existing 4G network in Colombia.

Contacts

Colin Riegels
Colin Riegels

Managing Partner
British Virgin Islands
Tanya Cassie-Parker
Tanya Cassie-Parker

Partner
British Virgin Islands
Russell Willings
Russell Willings

Partner
British Virgin Islands
Michelle Frett-Mathavious
Michelle Frett-Mathavious

Counsel
British Virgin Islands
Joanna  Hossack
Joanna Hossack

Associate
British Virgin Islands
Publications

Articles & Updates

International Financial Centres will facilitate the opening up of Cuba 

Recent Experience

Harneys advises on Queen Alia Airport redevelopment financing 
Harneys assists with ITG Group credit line 
Harneys advises on Ukrainian wind park project