Cabei Eyes Mexican Market

Central American development bank Cabei is looking to issue up to MXN1bn of 10-year bonds in the Mexican domestic market towards the end of the July, after meeting investors in Mexico City last week. “This is a market that is picking up pace and where we want to maintain a strategic presence,” treasurer Jose Felix Magana tells LatinFinance. “It is a market we are comfortable issuing in, there is investor appetite and there is a favorable swap rate into dollars so it is a potentially a good time to revisit it,” he adds. The bank wants to issue to grow its lending portfolio, in particular for infrastructure projects. Cabei last came to the Mexican domestic market in 2008. It has 9 outstanding bonds in the market, worth a total $400m, with maturities of 2-12 years. Cabei has done 50-60% of its funding for the year, having pre-funded $500m in 2009.