In late August, an entity of the State of Mexico known as IFREM originated a roughly Ps4 billion ($306 million), 20-year deal backed by flows from property registration fees. Structured by MBIA unit LatAm Capital Advisors (LCA), the transaction was novel on a number of fronts.

For starters, there was the choice of guarantors on the A tranche for Ps2.77 billion and the B tranche for Ps1.3 billon. The Overseas Private Investment Corp. (OPIC), a development agency that structured finance players in the region know about primarily from its cross-border participation, guarantees the A notes for up to $250 million in interest and principal payments. Meanwhile, the Andean Development Corp. (CAF), a regional development institution with 18 member countries, guarantees the B tranche for up to 30% of the outstanding amount.

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