Ecuador Ups Buyback Plans

Ecuador says it may buy back up to $885 million of its global 2012 bond, above the $400-650 million previously mooted. The sovereign is obliged under its default terms to repurchase at least $125 million every year from 2006, but wants to buy back more of its costly 2012 global bond to lower its debt financing costs. Ecuador will finance the buyback using part of the money raised from its successful $650 million international bond issuance last year together with a loan of $400 million from the Latin American Reserve Fund (FLAR).