Bladex Mandates, Awaits Window

Banco Latinoamericano de Comercio Exterior (Bladex) has mandated banks for an international bond offering and is considering tapping the markets soon if conditions are favorable, Christopher Schech, supranational bank’s CFOs tells LatinFinance. With 5 to 7-year bond funding, the supranational bank can better insulate itself against volatility and be ready to compete should markets close as they did in the wake of the Lehman debacle. Size would need to be in line with the market’s liquidity requirements, likely $150m-$200m. Schech declines to name the banks Bladex has hired. The bank has several funding sources, including deposits, and most recently it has tapped the syndicated loan markets in Asia, achieving 3-year tenors. With an EMTN program already established, the bank can issue in any currency, though it always swaps back to dollars. Apart from market volatility, the new dollar bond is complicated by the need to come in size to satisfy investors’ liquidity needs and then having to find a home for the proceeds in Bladex’s lending portfolio. “You would need to know where funding is going on a matched funding basis,” says Schech. Bladex is also considering a local market foray in Mexico, but timing very much depends on suitable windows in the swap market.