Insured Latin bond to surface, despite devalued real

Wirz, Matthieu
April 2001
Asset Securitization Report;4/23/2001, Vol. 1 Issue 16, p13
The article reports on the decision of Tiete Emprendimientos, Brazilian subsidiary of U.S.-based utility giant AES Corp. to sell $300 million 15-year securitized bond via Banc of America Corp. with a variety of structural enhancements from the Overseas Private Investment Corp. (OPIC). This will mark the first sale of a Latin American bond featuring an insurance policy against existing devaluation. Bank of America will launch the 144A Reg-S in the U.S. on April 17-24, 2001 and in Europe on April 25-27, 2001. In order to avoid certain taxes, bonds will be issued through a fully owned offshore subsidiary named AES IHB Cayman Islands Ltd. OPIC is offering transfer and convertibility package with an added protection against expropriation risk.


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