The Caribbean nation of Antigua & Barbuda is looking beyond tourists for funds. With Delamore - Hitech Ltd. as arranger and investor, the unrated islands are readying a deal backed by future fuel tax revenues and rental income from a U.S. military base. "It's pretty difficult for Antigua to raise money in the commercial market," said Sanjeev Kumar, a director at the lead. "We'll be buying it for own books and later on we'll decide what to do."

The transaction is planned at US$14 million. Maturity will be 12-15 years and pricing will come between 8% and 11%. Delamor - Hitech, which is a Delamor & Owl Group Company, is shooting for an investment grade rating without the help of guarantees. The receivables originated from the military base carry the implicit backing of the U.S. government, Kumar said. As it is now structured, the vehicle would trap US$1.25 million worth of the rental receivables a year and US$50,000 a month of the fuel tax receivables.

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