Cofide Bond Expected

Cofide, Peru’s private-public development bank, has received a second investment grade rating, receiving a BBB minus score from Fitch. In early February, the bank received a BBB minus from S&P. Now that it is equipped with 2 high grade ratings, Cofide is likely planning to issue a bond, speculate DCM bankers familiar with the credit. The state-owned issuer hasn’t issued dollar notes in the past, according to Dealogic. Ratings reports do not detail plans for issuance. Furthermore, bankers say no RFP has been sent out. But Cofide does have outstanding a $185m 3-year step-up loan, raised in June 2008 and it may look to take advantage of favorable bond issuance conditions to refinance the facility. At launch, the loan was scheduled to pay 150.0bp in year 1, 162.5bp in year 2 and 175.0bp in year 3. Standard Chartered and Barclays led that deal, which was upsized from $150m.