Honduras could raise up to $850m in international bonds, the latest Latin American country to join the cross-border pipeline.
The Central American nation is eyeing a return to the bond market in January, according to a fixed income investor, preferring to tap the markets at a time when most sovereigns in the region look at funding plans.
Proceeds from the bond sale would ease duress on Honduras’ state-owned power company Empresa Nacional de Energia Electrica (ENEE), which has short-term debt repayments of roughly $17m a month, the source said.
Last year, Honduras planned to issue $500m in cross-border bonds to refinance ENEE debt, but eventually postponed its plans. Honduras raised $500m in 7.5% 2024 bonds in March 2013 in its debut cross-border issue. The sovereign’s 2024s were offering yields of 6.9% last week, after pricing the notes at par over three years ago.
In December that same year, Honduras turned to fixed income investors for a further $500m in shorter-dated 8.75% 2020 notes, which had tightened to yield 6.75% last week.
El Salvador is also looking to issue up to $550m in cross-border bonds.