Investors in Brazil's first international securitizations backed by real-denominated assets agreed recently to a postponement in final principal payments, allowing the landmark securitization program for computer manufacturer Vitech to remain afloat.

Bonds due to mature between April and November of this year will pay around four months later than scheduled, according to a source at Unibanco, which structured and underwrote Vitech's securities last year. "The trust will be able to generate the funds in this time," he explained.

The issuer hopes to maintain the securitization program for future issuance once the real and the financial markets stabilize enough to allow for more deals.

Vitech's deals were the first dollar-denominated securities backed by real-denominated assets, specifically the company's sales contracts.

In addition, the $150 million program broke new ground in that it did not use a hedge or swap to cover the currency risk. It was structured with overcollateralization to withstand a 25% drop in the value of the real, but the real has dropped much more than that against the dollar since the devaluation in January, and the deals were at risk of default.

The transactions, sold in bundles of around $15 million-$20 million over the course of last year, were bought mainly by U.S. private investors. - JB

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