Securitization of Bank Transfers

The bank BAC San José de Costa Rica has issued $210 million at a 7-year term securitizing the flow of deposits received from abroad in corporate accounts in the form of remittances or payments for exports or imports.  

Monday, November 24, 2014

Although the bank did not specify the interest rate for the issue, Gerardo Corrales, general manager of the company, told Elfinancierocr.com that "... it is a fixed return."

"... Structuring services were handled by the US bank Wells Fargo and the issue is in response to the securitization of deposits the bank receives from abroad to the accounts of their customers in Costa Rica known as incoming transfers. Those resources include all operations such as payment for export of goods and services and remittances received from companies ... instruments, which hit the market with a term of seven years, were purchased mainly by pension funds, mutual funds and insurance companies. "

"... With the issuance of the structured credit, the bank expects to improve the durability of its dollar liabilities in order to respond in the best way to the assets (loans) held in that currency."

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