While the holiday lull lingers in Colombia's domestic market, Commodities & Banca de Inversion (CBI) is upsizing a palm oil securitization, Fidupalma, to Ps50 billion (US$17.4 million) from Ps20 billion (US$7.0 million). "We tinkered with the structure to cut the costs for the originators," said Viviana Andrea Moreno, project manager at the structuring bank. Drawing on a large pool of growers, the deal may undergo other modifications as well. Fitch Ratings affiliate Duff & Phelps will assess the transaction. Fidupalma has been in the works since at least September, though the slow going is not unusual for the domestic market, particularly in the arena of structured finance.
Beefing up the deal puts it on par with a rival securitization of forward palm oil sales, structured by trade group Promotora de Proyectos Agroindustriales de Palma de Aceite (see ASR 11/11/02, p. 14). Neither deal has timing yet.