Colombian brewery Bavaria served up a 10-year, Ps350 billion ($136 million) securitization of forward contracts last week to local investors. Led by Bogota-based shop Correval, the deal closed at 7.15% plus CPI. As Fitch Ratings affiliate Duff & Phelps already rates the corporate an unbeatable AAA' on the national scale, the securitization was prompted entirely by balance sheet considerations and was not a vehicle for reaching a more conservative - or even new - crowd of investors. The structure has the same rating.

Also, from the investor standpoint, the risk of the transaction is not particularly detached from the originator, since the two obligors, Leona and Cervunion, are units of the same holding company as Bavaria. The collateral is made up of futures contracts covering the sale of barley and malt to the obligors, which brew beer from the raw material.

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