Bank Reveals Yield Target

Banco de los Trabajadores (Bantrab) is looking at a yield in the low-9% range for a new $150m 2020 bond expected to price Wednesday, according to people following the transaction. The Ba3/BB Guatemalan lender completed a European, North American and Central American roadshow last week. Bantrab is seeking funds to refinance debt and support its growth efforts. Deutsche Bank and BCP Securities are managing the deal, done through a Cayman Islands SPV. When assigning its rating, Fitch cites improved asset quality, an ample net interest margin and moderate but sustained profitability ratios. Bantrab was established in 1965 and is mainly retail-oriented and focused on consumption loans to low and middle-income employees. It is currently the sixth-largest bank in Guatemala in terms of assets. An international bond would be only the second-ever from a Guatemalan bank, according to Dealogic data, following Banco Industrial’s $500m sale last year.