Cabei Visits Asia

The Central American Bank for Economic Integration (Cabei) is currently visiting accounts in Asia on a non-deal roadshow, as it explores options in the offshore Chinese renminbi (RMB), or Dim Sum bond market, according to a source following the sale. The Central American development bank is in Singapore and Hong Kong with Standard Chartered. Cabei Treasurer Jose Felix Magana told LatinFinance last year that the development bank would consider a RMB300m-RMB500m ($48m-$80m) transaction with a 3-year or 5-year tenor in what would be its debut in the market. It sought to issue in the offshore RMB market a few years ago, but held back as it wanted to first see improvements in swap rates. Cabei has looked at America Movil’s and Korea Development Bank’s RMB-denominated transactions as two interesting reference points for exploring the market. Cabei’s most recent bond was a CHF150m ($164m) 2020 last month, its first deal in Switzerland since 2010. The bond priced at 100.198 with a 1.50% coupon to yield 1.47%, or mid-swaps plus 80bp. UBS managed the deal, rated A/A2.