Ecuador Considers New Bonds

Ecuador is listening to banks’ proposals for raising new international debt, its finance minister says. While it does not need to raise funds this year, Minister Patricio Rivera says in a statement, an issuance is being considered for future budget needs. A decision would depend on market conditions and what kind of yield and maturity it could get, he adds. Ecuador had been thought to be shut out of international markets ever since a 2008 default on $3.2bn of 2012 and 2030 bonds a special government committee had declared “illegal.” In June 2009, Ecuador received 91% acceptance in a buyback offer for the two series, paying just 35 cents on the dollar. It has since funded itself through other means, including a $1.5bn 2010 domestic bond sale, a $2.2bn loan agreement with CAF, and a $2.6bn loan agreement with China’s government. Ecuador is rated Caa2/B minus.