Costa Rica's Banco Interfin and Banco San Jose are expected to close a $62.5 million mortgage-backed securities transaction by the end of this month or in early June. It is currently the highest rated, non-wrapped, structured product coming out of Latin America, according to sources close to the deal.
The transaction features a political risk insurance policy from the Overseas Private Investment Corp. (OPIC) and the 144A deal is limited to qualified institutional buyers (QUIB). The A-tranche is $50 million and will be offered in the U.S., while the $12.5 million B-tranche will remain in Costa Rica.
Florida-based Raymond James is the banker in the transaction and sources say Moody's Investors Service is assigning investment-grade ratings to the private placement. In addition to OPIC's credit enhancement, sources say the structure and the country's economy played a role in the high rating.