Lehman Brothers is said to be working on a securitization of oil and gas royalties for the Argentine province of Salta. The deal, which is rumored to be for over $100 million, will be the province's first international transaction and its first royalties securitization.

Salta had been working on a local transaction backed by coparticipation taxes from the federal government. That deal was shelved, however, due to social unrest in the province. "Everything was ready to go," said a source familiar with the offering. "But it just wasn't a good time to go out and start talking to investors."

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