Group, has recently completed three separate credit enhancement transactions involving Latin American airlines.

In the first transaction, Centre has entered into an agreement to provide credit support for $100 million of notes issued for the benefit of Aerolineas Argentinas. These notes are payable from the future flows of international credit card receivables and other airline revenues.

In the event of payment default, Centre will pay the shortfall in scheduled principal and interest on the notes. Aerolineas Argentinas, Argentina's leading provider of both domestic and international air travel, operates a fleet of 39 aircraft and flies to 21 international destinations and 15 destinations within Argentina. The note issue is part of Aerolineas' new business and recapitalisation plan. Citibank, N.A. and Salomon Smith Barney acted as structuring agent and underwriter, respectively, on the issue. Centre also closed transactions involving two Mexican airlines, Aeromexico and Mexicana. In these transactions, Centre has provided credit support to $145 million of notes issued for the benefit of the two airlines. These notes, which were sold to US private placement investors, are backed by future flows of US dollar credit card receivables.

This transaction involved Aeromexico's first international debt issue since the peso crisis in 1994 and Mexicana's inaugural international debt issue.

Aeromexico and Mexicana are under the common ownership of Cintra S.A. and together have a dominant position in the Mexican domestic and international aviation market. Operating a combined fleet of 117 aircraft, Aeromexico and Mexicana fly to 47 and 51 destinations, respectively, in Mexico and worldwide.

Merrill Lynch acted as placement agent for both the Aeromexico and Mexicana transactions.

According to Centre's chief executive officer, David Wasserman: "Providing credit support through innovative use of insurance offers a flexibility and latitude that appeals to companies seeking financing in markets where complex risks make more traditional approaches difficult or impossible.'' Mr. Wasserman continued: "Having now completed several transactions in Latin America this year, Centre continues to find solutions to corporate financing needs in spite of unfavourable market conditions.''