CABEI lowers Interest Rates
The Multilateral Bank transfers the efficiencies obtained in its borrowing costs to benefit its borrowing countries.
This action represents its first rate reduction since 2021.
Tegucigalpa May 15, 2024.- The Central American Bank for Economic Integration (CABEI) announced today a downward adjustment between 0.50% and 0.65% in the interest rate applicable to current and new sovereign public sector loans that have an adjustable spread rate scheme (Term SOFR + spread).
According to CABEI's Executive President, Gisela Sánchez, the loans eligible for this improvement are approximately 120 operations that include the already disbursed portfolio, the loans approved pending disbursement, and the approvals contemplated under the 2024 Annual Operational Plan, which, in aggregate, exceed US$12 billion.
Mrs. Gisela Sánchez also added that this reduction in the interest rates of CABEI loans to its borrowing countries is a reflection of the continuous improvement in the bank's funding costs, particularly in bond issuances deployed in the international capital markets, where we are recognized as the best risk in all of Latin America with a “AA” rating. The objective is to transfer this benefit to the region's countries, especially considering the current context faced due to high interest rates resulting from efforts to contain global inflationary pressures.
CABEI's funding strategy contemplates a transversal objective of optimizing costs by diversifying maturities, markets, and instruments, as reflected by the more than 170 bond issuances executed by the Bank in 23 markets and 25 different currencies worldwide. Thus, in markets such as Mexico, CABEI obtains lower costs, and in the Asian and European markets it seeks longer tenors and/or diversification of investors, while the benchmark/global market accompanies the organic growth of its balance sheet.
Finally, President Sánchez reaffirmed her commitment to technical rigorousness and operational efficiency as fundamental elements that accompany this process to enhance CABEI's competitiveness as the region's main provider of multilateral resources.
A summary of downward variations in interest rates can be observed in the following table:
You can find CABEI Financial Conditions published quarterly on our website. Go to the website.
