El Salvador has not ruled out more bond issues this year, with talks of another $500m still on the table as the Central American sovereign issuer ponders its budget, two fixed-income investors told LatinFinance.
While the government prefers to tap the local debt capital markets, sources have said that domestic banks already hold substantial sovereign debt, which may have hit a ceiling.
“Conditions in the cross-border bond market are positive so it would not be surprising if [El Salvador] returned,” one bond buyer said.
El Salvador printed an 8.625% $601m 2029 note in February, after months of fiscal policy negotiations.
The sovereign’s financing needs this year are estimated to be $1.2bn, a second fixed-income investor told LatinFinance.
“It is no secret they need the money, but the question is how much local markets can take on before they go abroad,” the second investor said.