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Derivatives

Landmark Weather Deal Postponed

The Inter-American Development Bank's highly-anticipated weather-linked bond deal in Taiwan has been postponed. ABN AMRO is structuring the deal and it is referenced to part of Entergy-Koch Trading's weather portfolio, according to officials (DW, 3/14).

The Inter-American Development Bank's highly-anticipated weather-linked bond deal in Taiwan has been postponed. ABN AMRO is structuring the deal and it is referenced to part of Entergy-Koch Trading's weather portfolio, according to officials (DW, 3/14). "They've told us it's been delayed but didn't give us the reason," said a manager at a local securities house that had signed on to distribute the deal.

Several investors and distributors believed that the deal was intended to go live around March. Sam Lin, head of debt capital markets at ABN in Taipei, however, said the deal is on track and that the market was mistaken about the March date. He continued that the deal will be completed before the end of the year, adding, "There's a lot of counterparties involved and they all have to feel comfortable." An indicative term sheet published in February that was obtained by DW stated that the first coupon would have been paid in June, but the deal must have been revalued since then, noted officials. Lin declined comment on this point.

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