The Central American Bank for Economic Integration (CABEI) auctioned today in the Dominican Stock Exchange, bonds amounting DOP 740 million.

This new regional bond issue holds a tenor of 5 years and a coupon of 12%. The issuance had strong demand from local institutional investors, namely institutions from the Dominican financial system. The bonds were placed by Citinversiones de Títulos y Valores S.A.

With this issuance CABEI positioned itself as the first international borrower to tap the Dominican capital market, with a local bond authorized by the Dominican Regulator (SIV).

The bonds have been issued following CABEI’s mandate to support and promote local capital markets and integration, via providing diversification and investment opportunities for local institutional investors. “CABEI, following its mandate of supporting local capital markets, has included those markets in its funding strategy”, said Dr. Nick Rischbieth, Executive President of the supranational institution. “The Dominican Republic is a beneficiary and extra-regional member of CABEI, and this bond is part of the compromise CABEI holds with its Members”, added.

CABEI, in support of its Beneficiary Members’ countercyclical policies, is planning to raise at least USD800 million in 2010 for further investment in development and integration projects in the region.