Cabei Returns to USD Market after Three Year Hiatus

Central American development bank Cabei tapped both the international and local markets Thursday to raise $367m in one fell swoop. The borrower returned to the dollar markets for the first time since 2009, tempted by what remain ultra-low yields and the strong performance of recent deals. Cabei priced a $250m 5-year at 99.104 with a 3.875% coupon to yield 4.075%, at the tight end of 4.125% area guidance (+/-5bp). Capped at $250m, the deal saw largely buy-and-hold accounts participate, driving demand up to 3x. Appetite for the paper largely came from the US, but there was also strong participation from European accounts familiar with the name now that Cabei has made several forays in the Swiss franc market. Ratings are A2/A minus. Citi and HSBC acted as bookrunners. The deal came as Cabei also issued MXN1.5bn ($117m) in the Mexican domestic bond market yesterday. The 3-year bonds pay TIIE+15bp, in line with expectations, and the issue saw MXN2.4bn of demand. Banamex led the sale, rated AAA on a national scale. Buyers were said to be a diversified mix. Proceeds from both deals are expected to be used for general corporate purposes.