Latin American originators continue to push product in the cross-border market, despite the menace of rising rates. Brazil's Banco Bradesco issued an eight-year US$100 million transaction backed by diversified payment rights (DPRs). Wrapped by MBIA, the deal priced at 4.685%. "Using the monoline makes the deal less expensive for us," said Jose Guilherme Lembi, executive director at Bradesco. "If we swap the deal into a floating spread, it comes out to less than 40 basis points over Libor."

Funds, Lembi added, are going to trade finance. ABN AMRO led the deal, reprising its role from a two-tranche US$400 million arranged for Bradesco in October 2003. Dewey Ballantine and Pinheiro Neto were principal legal counsel for the originator in the current deal on the cross-border and domestic fronts, respectively. Clifford Chance provided counsel as well. Mayer, Brown, Rowe & Maw advised ABN on the cross-border side.

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