Cabei Opens Tico Bond Market

Central American development bank Cabei has placed CRC10.4bn ($19m) in local bonds in the Costa Rican market. The issue is the first placement by a foreign issuer in the domestic market, according to Cabei CFO Jose Felix Magana. The 5-year notes pay interest at the Tasa Basica Pasiva (TBP) benchmark rate, and were priced at 92.9 to yield TBP plus 200bp. TBP was at 11.25% Thursday, according to Costa Rica’s central bank. The issue is the first from a CRC26bn program, and should be followed by other tranches, Magana says. Six Costa Rican pension funds bought the deal. Magana says proceeds were swapped into dollars, but that future funds from the program may be kept in CRC, as the bank has some liabilities in the currency. Cabei is no stranger to exotic DCM, having placed $157m equivalent in three placements of 2-year bonds in the Taiwanese market, with a fourth from the program expected in February. Magana says Cabei plans to issue locally in two other LatAm countries this year and is considering an issue in Europe. Citivalores Accival managed the Costa Rica transaction.