Costa Rica Aims DCM Return

Costa Rica is heard aiming for a yield of low to mid 4%-area for a new benchmark 10-year bond, according to a people familiar with the sale. With pricing expected as soon as today, the sovereign is considering a $750m-$1bn size for its first international bond transaction since 2004. Citi and Deutsche Bank are managing the transaction. The Baa3/BB+/BB+ issuer plans to use proceeds to address existing debt, including a $250m bond coming due in 2013. The country’s congress has authorized the government to issue $4bn in bonds over a 10-year period.