{"investor_group_id":"1","date_received":"2025-12-20","question_original":"Is there any dynamic over-collateralization mechanism if land values decline or if additional debt is introduced at project level?","internal_owner_id":"4","draft_answer":"The bond documentation is intended to include covenants preventing additional secured debt at project level that would dilute bondholder security. We are also considering tests whereby, in case of material erosion of collateral coverage (for instance due to disposals or adverse re\u2011valuations), additional parcels would need to be added as collateral or distributions upstream from the project would be restricted. The final mechanism (if any) will be calibrated together with legal and structuring advisors to remain practical under Costa Rican law.","final_answer":"The project is structured with a conservative level of over-collateralization at inception, and no dynamic collateral adjustment mechanism is currently foreseen.\r\n\r\nThat said, if any additional debt were to be introduced at the project level, it would only occur in the unlikely scenario where the full target amount of the Luxembourg bond is not raised. In such a case, external debt would be structured solely to complement the shortfall, not to increase leverage or risk.\r\n\r\nThis complementary financing would be calibrated to ensure it does not impair the project\u2019s repayment capacity, nor alter the legal or economic rights of bondholders. Any such arrangement would be fully disclosed and structured to maintain investor protection.","status":"In progress","priority":"Medium","version":"V1 2025\u201112\u201122","update_date":"2025-12-23","linked_faq_id":"3","notes":"We can not prevent additional debt. We can limit it to 7M if taking into account both bonds and other third party","updated_at":"2026-01-15 11:55:30"}