Guatemala made its first foray into future flows Sept. 9, when Banco Industrial priced a two tranche, $200 million deal backed by diversified payments rights (DPRs). Wachovia Securities was sole lead on the transaction, which broke down into a $125 million, seven-year final wrapped piece and a $75 million, five-year final unwrapped tranche. The former, insured by XLCA, priced at 32 basis points over three-month Libor, while the latter priced at 145 basis points over. Fitch Ratings, Moody's Investors Service, and Standard & Poor's rated the unwrapped piece BBB', Baa2,' and BBB-', respectively. The wrapped piece was, of course, triple-A all around.

The unwrapped piece was added only in the final stages before launch, according to a source close to the deal. Wachovia bankers apparently did so to discern whether there was any appetite. There was, and investors from the triple-B world in the U.S. and abroad bought in. Providing counsel for Wachovia was Dewey Ballantine for international law and Rodriguez Archila Castellanos Solares & Aguilar for domestic law. The respective advisors to Industrial were Mayer, Brown, Rowe & Maw and Mayora & Mayora.

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