Ecuador Calls On Banks To Bid For Bond Business

Ecuador has invited banks to bid to manage the sovereign’s first international bond offering since it defaulted on its debt in 1999. An announcement in yesterday’s New York Times asked banks to submit their bids by October 14. It said the offering will not be made in the US but failed to provide more detail. The Latin American issuer defaulted on $6.5 billion of debt in 1999. In 2000 it restructured its debt, issuing 12- and 30-year dollar-denominated paper. Ratings agency S&P yesterday reaffirmed its CCC+ long-term sovereign credit rating for Ecuador and removed it from CreditWatch with negative implications. The action follows the approval of a $400 million loan from the Latin American Reserve Fund (FLAR), which reduces the short-term risk of a shortfall in government financing.