At the bidding of a single investor, El Salvador's Banco Cuscatlan recently issued a US$50 million bond backed by diversified payment rights (DPRs), according to a source. ING arranged the transaction, which funded on June 28. The buzz was that an investor that had a previous Cuscatlan ABS, which was amortizing, wanted to increase exposure to the structure. The transaction came unwrapped, a departure from the last time Cuscatlan tapped its DPR program in the third quarter of 2003 via Citigroup Global Markets. Standard & Poor's and Fitch Ratings rate the current transaction BBB'.

It is the third deal to come off the DPR program for a total issuance of US$275 million. Some US$183 million is outstanding, according to an S&P report. The DPRs backing the program stem from capital flows passing through the bank, such as export payments, worker remittances, export payments and other flows. Cuscatlan is understood to have a LC-backed CP program in the works.

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