Cabei to Press on with Local Currency Taps

The Central American Bank for Economic Integration (Cabei) plans to continue issuance in Taiwan, Costa Rica and Colombia as it meets 2009 funding needs of $500m. No decisions have been made, but Treasurer Jose Felix Magana tells LatinFinance the placements so far this year — $20m in Costa Rica, $107m in Colombia and $190m in Taiwan – have gone better than expected. “There was demand left behind, and we could execute in one or all of those markets again this year,” the official says. Magana adds there could also be more Honduras placement, after $5.5m last year, and the bank is evaluating a previously untapped market in both Asia and Latin America. “We’re trying to use our good credit to educate [issuers] about longer tenors and different types of products,” he says, noting that this is not limited to bonds. Cabei plans a $100m regional commercial paper program, with tenors of 30-360 days in new markets, for this year. It will also replace an existing CP program for US and European issuance with a $500m program by the end of April. Magana says Cabei has no need to place dollar bonds, though it does not rule out the possibility. The bank estimates it will lend $1.3bn this year, versus $1.6bn in 2008.