It is becoming quite clear that MT100s are the trendy deals of 2002. El Salvador's third largest bank, Banco Salvadoreno, is gearing up to launch a $75 million to $100 million financial future flow, which will mark the first one of its kind for the company and a third for the country. Brazil, the country where Latin American MT100s were born, is also expecting Unibanco to enter the MT100 arena in the third quarter.
Banco Cuzcatlan was the first to grace El Salvador's market with an MT100 transaction via Salomon Smith Barney earlier this year. Banco Agricola soon followed, closing its first financial future flow in March, a $140 million diversified payments right deal led by Barclays Capital. Now, Merrill Lynch is rumored to be leading the country's third MT100 transaction through Banco Salvadoreno in only a few months.
In the meantime, Brazilian entities continue to churn out deal after deal. Perhaps most interesting, however, is Unibanco's entrance into the land of MT100s. While its financial future flow via JPMorgan is said to be a relatively large deal, it will be a smaller deal than Banco do Brasil's existing deal, sources said. The Unibanco transaction will feature a wrap from MBIA and is slated to close within the next three weeks.
Also in the market is Banco do Brasil's third MT100 transaction, expected to be between $200 million and $250 million, and it is rumored that ING Barings has won the mandate. Merrill Lynch brought the bank's first and second transaction, although sources said Banco do Brasil is looking to reduce costs this time around (see ASR 4/8/02).
Brazil's state-owned oil giant, Petrobras, is also waiting in the wings with its fourth Petrobras International Finance Company (PIFCO) transaction via JPMorgan, the second for the year. PIFCO, an offshore subsidiary that imports the oil for Petrobras, will issue up to $500 million in debt and Barclays will provide a letter of credit that will provide coverage for transfer and convertibility risk. This is also expected to be the longest deal yet, with a 15-to 20-year maturity. (see ASR 4/8/02).