Case Study Investment Finance
Loan to the Toscana group of companies.
Harry Thompson is a Vice President with the Private Banking unit of First National Bank
of New York (FNB).
During Harry’s recent visit to Guatemala City his client Federico
Siena requested a $25 million proposal for a 5 /7 year term loan, to finance the expansion
of his businesses, and a $7 million short-term working capital facility (in local currency
and/or U.S dollars) for the use of his operating companies. Mr. Siena, a client of FNB for
the past 25 years, made clear that he expected a competitive and innovative proposal
from FNB, and informed that he will be requesting proposals from his private bankers at
J.P. Morgan Chase and Goldman Sachs.
Thompson (45) holds a MBA from Columbia University and has been with FNB since
1985. During his time at the bank he had various assignments in the corporate and
investment units and is highly regarded as a skillful and experienced banker. Thanks to
growing up in Argentina, where his father was the chief financial officer for a U.S.
multinational, Mr. Thompson feels at ease in the Latin American and American cultures,
an important advantage in his present assignment as manager of “special” private
banking relationships in Latin America, where his duties require him to spend half of his
Mr. Siena (65), a citizen and resident of Guatemala, is married to Maria Trebaldi (55)
with whom he has three children, Federico (33), Antonia (32) and Julio (30). He has an
undergraduate finance-degree from New York University (NYU) and is highly regarded
as a skillful and successful businessman. He is thought to be one of the wealthiest men in
Central America with a net worth of approximately $190 million.
Upon the death of his Italian emigrant father 35 years ago, Siena inherited El Cafetal S.A.
de C.V., a small coffee producer, which today is the largest coffee exporter in Central
America under the well-known brands of Maya, Antigua and Robusto. More than ¾ of
the coffee production is exported to Europe and the United States, in both grain and
powder form, generating a strong cash flow in hard currencies. He also expanded into
other businesses such as profitable car dealerships in Guatemala, Honduras and El
Salvador (with the exclusive representation for Toyota, Mercedes, BMW, and Ford), a
49%/51% joint venture with Intel to produce chips for export to the U.S., and a chain of
food related franchises in Honduras and El Salvador that include Burger King, Pizza Hut,
Kentucky Fried Chicken and TG Fridays.