Category: Bonds

Tegucigalpa-based regional development bank Cabei has priced a 3-year local currency note in its home country via its MTN program. Bank officials claim the deal is the first issuance in the local market by a non-native borrower – Cabei is a supranational bank. The floating rate deal is for 100m lempira, or $5m, and priced 40bp through the 182-day central bank bill, which was recently at 10.51%. “The central bank issues at a maximum of 1 year in Honduras and this is a 3-year deal,” says Cabei treasurer Felix Magana. Citi Credito placed the notes with banks and insurance companies. Cabei plans two more CentAm local currency issues this year: a $50m equivalent 5-year note and a $25m 7-10 year note, says Magana.

The IDB is setting up its first capital markets guarantee facility in Mexico to help local corporates access domestic debt markets at better terms. The facility of up to 450m UDIs ($180m) will be set up in partnership with IXE Casa de Bolsa to provide credit enhancements for Mexican businesses, including financial companies and SPVs. The providers are targeting deals in MXP for the equivalent of $20m-$100m in size. The partial credit guarantees, which will be reimbursable in MXP, will help companies with local ratings of at least BBB place debt securities at tenors of more than 3 years. They are also aimed at achieving greater access to local institutional investors, whose portfolios mostly hold government and corporate bonds rated at least AA.

IDB has approved a $100m 25-year loan to Brazil for expansion of its Florianopolis-Osorio highway, part of the Mercosur corridor, which is a major road for transport of goods between Argentina, Brazil, Paraguay and Uruguay. The facility has a 4.5 year grace period and is priced at Libor flat, an IDB official says. Brazil’s national department for transportation infrastructure (DNIT) will carry out the program.

Cabei plans to launch the sale of TWD5bn ($159m) in bonds in the Taiwanese market in the first or second week of September. A 5-year tenor would be the most efficient, Jose Felix Magana, head of Cabei’s treasury tells LatinFinance, but the multilateral is also seeing demand for 7-year paper and will soon decide between the two maturities. “In these times, having a global platform has paid off,” Magana says of being able to tap a still liquid domestic market when others are difficult to access. The sale, to be Cabei’s fifth in Taiwan, will be mostly marketed to local institutional investors. The bank has 20% of its liabilities in Asia, having also issued in Thailand, Hong Kong, Singapore and Japan. Cabei plans to sell about $75m in local currency denominated bonds in Costa Rica, Honduras and El Salvador before the end of the year, Magana says.