LRI Luxembourg, a subsidiary of German commercial bank Landesbank Rheinland Pfalz, has invested in a series of synthetic notes and will also manage the underlying reference portfolio. The EUR25 million, floating-rate notes are linked to a portfolio of 200 corporate credits with an average rating of A minus, which can be substituted by LRI throughout the life of the seven-year transaction. Elke Erdmann, spokesman for LRI, did not immediately respond to questions about the transaction and reasons for investing were unclear. The notes will be issued by Viso, an offshore special-purpose vehicle, and have been arranged by Dresdner Bank in London. Structurers from the firm could not be reached for comment by press time.
LRI Buys Self-Managed Notes
