Banco Santander Brasil, S.A.

Increasing further the collaboration between the private insurance market and MIGA, the Agency issued its first contract involving Chubb & Son of the United States for a project in Brazil. Also participating are four Lloyd's of London syndicates. The project will fund the expansion of the general lending activities of Banco Santander Brazil, S.A. (BSB), a wholly owned subsidiary of Banco Santander, S.A. of Spain. MIGA's contract has been issued under its Cooperative Underwriting Program (CUP).

MIGA insured $100 million of negotiable notes, with a three-year tenor, issued by BSB to Santander Brazil Risk Insured Trust (SBR), a trust created by Banco Santander Central Hispano and other investors. The transaction is noteworthy because it reaffirmed Brazil's return to the international capital markets in medium tenor issues. BSB is expected to use the funds to reaffirm medium-term loans to its target clients in the agriculture, infrastructure, and manufacturing industries through its branches.

This project reflects MIGA's recent efforts to increase the availability of insurance capacity for foreign investments by working closely with private insurers. MIGA's guarantee contract, totaling $107 million in coverage, was co-insured under the Agency's CUP by the Great Northern Insurance Company, a member of Chubb & Son; Lloyd's of London syndicates ACE Global Markets' Syndicate 488/2488, M.D. Reith, Esq., And Others, Syndicate 861; M.E. Brockbank, Esq., and Others, Syndicate 1209; and N.J. Metcalfe, Esq., And Others, Syndicate 588.