Cabei Adds to Taiwan Issue

Cabei has priced a TWD1.8bn ($54m) 2-year fixed rate bond in the local Taiwan market at par to yield 2.60%. The issue is the second tranche from a TWD7.0bn program, following the mid-December issue of TWD1.3bn. Three institutional investors bought into the deal, Cabei treasurer Felix Magana tells LatinFinance. It featured a gradual, non-public book building process where the size of the issue is tailored to investor demand. Three different buyers participated in the first tranche, he says. “It was very important to launch a deal at the end of the year as a message to the markets,” Magana explains. He says a third tranche can be expected later this month, with a fourth likely in February. The lender rated A2/A minus is also structuring 2 issues in other countries for January or February, he explains, declining to state where. Cabei has now issued 5 times in Taiwan, a member nation of the Central American multilateral bank. HSBC is sole bookrunner on this and the first series of TWD issuance.