Costa Rica Defines Bond Platform

On the back of last week’s Fitch upgrade to BB+, Costa Rica’s finance ministry has announced it will seek congressional approval for a $2bn international bond program. The markets have been expecting a new bond from the sovereign, as it faces a budget shortfall and upcoming maturities, and the government had previously indicated plans for an international issuance. “We expect the authorities to issue four $500m bonds between 2011 and 2014 in order to roll over the corresponding $250m annual maturities during the same period,” Nomura says in a report. The firm expects Costa Rica to seek maturities of 15-plus years, and says first deal would likely happen not happen before Q4, due to the government’s prioritizing a fiscal reform package. DCM bankers expect a formal RFP process after congressional approval. Baa3/BB Costa Rica’s last cross-border bond was a $250m 10-year in 2004, according to Dealogic.