Costa Rica Takes to the Road

Costa Rica plans to meet fixed-income accounts this week, ahead of what would be its first international bond transaction since 2004. The sovereign visits Los Angeles and London today and New York and Boston Thursday. Citi and Deutsche Bank are managing. Government officials have previously told LatinFinance that Baa3/BB+/BB+ rated Costa Rica would aim for a 10-year bond of up to $1bn, ideally pricing in the low 4% area, though it could also choose a longer tenor. Guatemala’s (Ba1/BB/BB+) $700m 2022, priced to yield at 5.875% in May, is one reference point. The country’s congress has allowed the government to issue $4bn in bonds over a 10-year period. It plans to use proceeds to address existing debt, including a $250m bond coming due in 2013. The sovereign hopes to have done two bond transactions totaling at least $2bn before the country’s 2014 elections.