Global Bank to Reattempt Covered Bond

Panama’s Global Bank is heard starting investor calls for a covered bond offering as it targets a $200m sale as soon as Thursday, with the tenor still to be determined. The sale, a revival of a previous attempt in May, would be the first issue of a covered bond in Latin America. The transaction is being led by Deutsche Bank and HSBC. Backed by a cover pool of residential mortgages denominated in USD and located in Panama, the sale received a Baa3/BBB minus rating, above Global Bank’s Ba1/BB+ default rating. In May, the lender had been looking at a $200m 5-year bond at a 5.00-5.25% yield.