BKM | BERKEMEYER Advises Frontclear on the First International REPO Transaction with a Local Bank

By BKM | BERKEMEYER

BKM's Banking and Finance team provided comprehensive legal advice to Frontier Financial Corporation B.V. ("Frontclear") and its subsidiaries in the first international REPO transaction between a foreign financial institution and a local bank in Paraguay, executed under a Global Master Repurchase Agreement (GMRA) using Paraguayan sovereign international bonds as collateral.

BKM advised Frontclear throughout the transaction on both regulatory and commercial matters under Paraguayan banking and capital markets law. The firm's work included reviewing the transaction documentation under the GMRA framework, adapting its provisions to comply with local legislation, issuing legal opinions, and assisting in the validation of the model transaction structure.

The BKM team was co-led by Partner Manuel Arias and Senior Associate Andrés Nasser, with support from Senior Associate Álvaro Rojas.

Frontclear, headquartered in the Netherlands, is a financial markets development institution that promotes stable and inclusive financial markets in emerging economies, with expertise in money markets, derivatives, and trade finance.

BKM congratulates Frontclear on the successful completion of this landmark transaction, which represents a significant milestone for Paraguay's financial market. The transaction is expected to create new opportunities to deepen the local capital market, foster its development, and expand access to financing instruments. The firm also thanks Frontclear for the trust placed in its Banking and Finance team.