MSF Trustee Ltda.

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MIGA issued guarantees of $90 and $60 million to MSF Funding LLC (MSF) in its first coverage of a capital markets issue, and the first internationally rated securitization of Brazilian loan and lease receivables from the financing of medical equipment—marking a milestone for both MIGA and Brazil. The guarantees cover floating-rate notes issued by MSF Funding LLC, whose parent company, MSF Holding Ltd., provides loan and lease financing for the supply of high technology diagnostic imaging and radiation therapy equipment to hospitals, physician groups, and clinics throughout Latin America. The notes are based on the company's future leasing revenues and secured by US dollar-denominated financing contracts in Brazil. The guarantee will protect MSF's ability to convert funds generated in local currency into US dollars and to transfer them outside the country, as well as guaranteeing the company against expropriation of its Brazilian bank accounts. The project aims to address the shortage of adequate spending on health care. MSF is using the financing proceeds to originate new loans and leases in Brazil, where specialized medical equipment is in short supply and much of what exists is obsolete. The equipment being financed includes magnetic resonance imaging, computed tomography imaging scanners, and other medical devices, which will help improve the quality and cost-efficiency of the country's health care services, particularly for cancer patients. The project is expected to have many other developmental benefits, including the training of local medical staff in the equipment's use and an estimated contribution of $10 million a year in taxes to the Brazilian government. MIGA proved key to improving the risk profile of the notes and helping the investor secure the financing needed, enabling the issue to be rated above Brazil's local and foreign currency ratings. The Class A Notes received an A2 rating from Moody's Investor Services and an A rating from S&P and Fitch IBCA. The Class B Notes were rated Baa2 and BBB respectively, and the Class C Notes received a BB rating. The guarantee was reinsured with eight Lloyd's of London syndicates and with the Netherlands Development Finance Co. (FMO). FMO is also a shareholder in MSF Holding Ltd., together with IFC, and Philadelphia International Equities.

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