That's a Wrap

That's a Wrap

The road to market is smoother with financial guarantees.A Guatemala bank bond issue wouldn't normally get a second glance from the capital markets. While Central America's largest economy is a big draw for ethnologists and coffee lovers, its lack of investment grade and rule of law have kept conservative investors away. But last September the country's largest bank, Banco Industrial, issued a two-tranche $200 million bond that was eaten up in New York. More impressive was that the $125 million first tranche was priced at just 32 basis points over LIBOR. The bonds are backed by the cross-border currency flows stemming from Guatemala's $3 billion-a-year remittance market, of which

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