Guatemala’s Banco Industrial has closed a three-tranche $160 million structured deal, an upsize from the $100 million initially proposed, according to sources close to the deal.

Pricing was undisclosed. The transaction was a private placement.

The floating-rate 2011-1 tranche for $50 million and fixed-rate 2011-2 tranche ($40 million) mature in 2018, while the 2011-3 fixed-rate notes ($60 million) come due in 2021. The paper is backed by existing and future dollar-denominated diversified payment rights (DPRs), which correspond to capital flows, export payments, and family remittances processed through Industrial. Fitch Ratings rated the deal ‘BBB,’ a three-notch uplift from the bank’s ‘BB’ local-currency issuer default rating.

The deal was arranged by Wells Fargo, which is also one of the biggest designated payment banks (DPB) for the DPR flows. A DPB is where a payment originates before it is processed by Industrial.

The issuance brings the outstanding volume under Industrial’s DPR program to $408 million. The other $258 million corresponds to the amortized amount of a $300 million deal issued in 2007 and maturing in 2014.

The bank made its debut in DPRs in 2005, when it issued a two-tranche $200 million transaction, broken down into a $125 million, seven-year piece wrapped by XLCA and a $75 million, five-year unwrapped tranche. Sometime in 2007, the transaction was reportedly dropped into Panterra, a Citibank conduit with a taste for emerging market debt. But as with so many other conduits, Panterra was wound down in 2008. 

As of press time, it was unclear whether any of the $125 million was refinanced, although it would seem to not include the outstanding amount calculated by Fitch. An e-mail to a Banco Industrial official was not returned as of press time.

When the most recent deal was sized $100 million, Fitch estimated that Industrial’s DPR program would represent roughly 5.6% of overall liabilities and 48% of long-term funding.

Last year, Industrial’s DPR flows were a hair over $6 billion. They look to be headed higher in 2011. (see chart below)

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