Cabei Cracks Open Honduran Local Market

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.