Cabei Expected at 130bp over Udis

CentAm development bank Cabei says it will issue up to the equivalent of MXN1bn 10-year bonds denominated in Udis July 28. Price talk is Udibonos plus 130bp, according to investors looking at the AAA sale. Interest from investors after meetings 2 weeks ago in Mexico City and a favorable swap rate into dollars make it a good time to revisit the market, says treasurer Jose Felix Magana. 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 2010, having pre-funded $500m in 2009.