Global Bank Preps Covered Bond

Panama’s Global Bank plans to meet investors ahead of a covered bond sale, what bankers say would be first such issuance out of Latin America. After a visit to Lima Monday, the bank will see accounts today in London, followed by New York and Boston before finishing in Los Angeles April 30. A 144A/RegS covered bond would follow, market conditions permitting, though specific details were not available. Officials at Global Bank decline to comment. Deutsche Bank and HSBC are managing the process. Secured by a cover pool of mortgage loans or other debt, covered bonds give investors preferential claim in the event of a default, allowing issuers to get tighter pricing versus senior unsecured debt.