Crédito Real acquires 70% of Instacredit for $70 million

Client(s) Crédito Real, S.A.B. de C.V. Sofom, E.R.

Jones Day advised Crédito Real, S.A.B. de C.V., SOFOM, E.R. ("Crédito Real") in completing the purchase of a 70% equity interest in Marevalley Corporation, a Panamanian holding company with entities in Costa Rica, Nicaragua, and Panama operating under the name "Instacredit." The transaction was structured as a subscription and purchase of shares with an aggregate value of $70 million. Additionally, Crédito Real refinanced $21 million of Instacredit's debt.

Founded in 2000, Instacredit grants loans to low and middle-income segments of the population whose needs are not adequately served by traditional banking institutions. It currently operates 52 branches in Costa Rica, eight in Nicaragua, and one in Panama. Crédito Real is a leading financial institution in Mexico that also serves low and middle-income segments of the population by providing payroll loans, used car loans, small business loans, durable goods loans, and group loans. With this transaction, Crédito Real seeks to diversify its loan portfolio by increasing its customer base in Central America.