CABEI placed MXP 350 million long-term securities in the Mexican market.


CABEI demonstrated its strength in global capital markets by issuing MXN$ 350 million in bonds maturing in 12 years. This successful placement happened amid adverse international markets, low investor confidence and a credit crisis.

The Mexican Peso UDI indexed notes (Investment Unit; Spanish acronym UDI) had an unprecedented spread for an issuer with an AAA credit rating (the highest local rating). This spread, UDI Bond + 0.50% (4.44% fixed rate), established an important benchmark within the market and solidifies CABEI’s reputation among investors as an institution with proven financial strength.

The issue was sold among main institutional investors in the Mexican market, including securities advisors, corporate treasuries, and public institutions. The notes were given the highest local rating by Moody’s Investor Service, Inc., Fitch Rating, and Standard and Poor’s and were issued under the umbrella of CABEI’s Medium Term Notes Program (MTN). The notes were placed by Bulltick Capital Markets (Bulltick Casa de Bolsa in Mexico).

According to Acting Executive President Nick Rischbieth, this issue took place in conjunction with CABEI’s “diversification and deepening” strategy. “One of the most important factors of this issue is that the pricing reflects how investors are increasingly depending on their internal credit analysis as opposed to simply base its investment decisions on the ratings reports provided by the major agencies”

About the Central American Bank for Economic Integration (CABEI)

Headquartered in Tegucigalpa, Honduras, CABEI is Central America’s main multilateral bank and financial arm. On December 13, 1960, CABEI was founded by Guatemala, El Salvador, Honduras, Nicaragua and Costa Rica, as part of a regional integration process that seeks to foster economic and social development. A number of non-regional members have subsequently joined CABEI, including Mexico, the Republic of China (Taiwan), Argentina, Colombia and Spain. Belize was also incorporated as a non-founding beneficiary member and Panama and the Dominican Republic joined as non-regional and non-founding beneficiary countries. In 2007, CABEI attracted and disbursed a total of US$ 2.89 billion in funds for projects within the region.
Currently, CABEI enjoys four international risk ratings from prestigious credit rating agencies within the “A” scale. This includes an A- rating from Standard & Poor’s, an A2 rating from Moody’s, an A- from Fitch Ratings, and an A+ from Japan Credit Rating (JCR).