Banco Itau has been preparing the third installment of its MT100 securitization program with an unlikely underwriter, Nomura Securities. The issuer sold a US$150m 3.8-year wrapped securitization of electronic trade payment receivables in July at Libor plus 65 basis points via Banc of America. XL Capital wrapped both previous transactions but is tapped out in Brazil, allowing MBIA to muscle its way into the new transaction, said a banker away from the deal.
Nevertheless, the insurer will not commit to the new trade until it visits Itau for due diligence later this month. While Nomura's forte is underwriting in yen, the dollar-denominated assets backing the bonds requires an issue in the dollar market. Heavy allocations will likely go to Japanese institutions.