Further details have surfaced on a future flow deal from Central America. Pricing for Banco Cuscatlan's bond backed by diversified payment rights (DPR) came at 87.5 basis points over three-month Libor, according to a source on the US$125-million transaction. The deal was rated AAA,' thanks to a surety by XL Capital Assurance (for information on the structure see ASR 9/8, p. 21) The bank is "over-liquid" at the moment, but is still entertaining a return to the market in the next year or so, the source said. "It all depends on conditions," the source added. Arranger Citigroup sunk the deal into one its conduits. In addition to the previously reported legal counsel, Salvadoran firm Delgado & Cevallos worked on the transaction as domestic advisor to Cuscatlan. Meanwhile, Banco Agricola, which recently gave Wachovia Securities a mandate for a DPR, is said to be leaning toward the unwrapped option for a bond backed by diversified payment rights (see ASR 9/15, p. 1).


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