Bolivia in Discussions about Foreign Bond Foray

The Bolivian sovereign has been talking to 8 banks about raising at least $500m in the international bond market after sending out proposals (RFPs) earlier this year, says a spokes person at the ministry of finance. The sovereign is considering a 10-year 144A/Reg issue, marking what would be its debut foreign bond, at least in recent years. Proceeds from the Bolivia trade are expected to be used to finance investment projects. “We are taking advantage of better macroeconomic conditions to issue in the international market,” the spokesperson says. This comes after S&P revised its outlook on Bolivia’s B+ rating to positive, citing large infrastructure and investment projects that may benefit the country’s growth prospects. Moderate economic growth, steady inflation and a decline in net debt-to-GDP ratios all help support the country’s ratings. Bolivia is rated B+ by S&P and Fitch.