Brazil-based Companhia de Bebidas das America (AmBev), Latin America's largest beer brewer, is tapping the market keg with a structured corporate $500 million deal backed by a political risk insurance policy (PRI) from Steadfast Insurance Co., a wholly owned subsidiary of Zurich American Insurance.

Companhia Brasileira de Bebidas (CBB), AmBev's wholly owned subsidiary, will issue the notes and AmBev will act as the guarantor. UBS Warburg will underwrite the transaction. The 144A deal, expected to close by year-end, features a reserve fund intended to protect CBB and AmBev against the risk of expropriation of the company's funds and the inability to convert Brazilian reais into U.S. dollars or to transfer these dollars to the trustee in the U.S.

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