The Central American Bank for Economic Integration (CABEI) auctioned today its first issuance, out of its new Regional Commercial Paper Program (RCP) in the Costa Rican capital markets. CABEI managed to raised CRC 6 billion, maturing in 6 months, linked to the local rate Tasa Básica Pasiva. The issuance was 1.5x oversubscribed.

CABEI by implementing the RCP program opens a new scheme for investments in local currency and US Dollars, and permits the borrower to constitute a flexible financing vehicle out of which it can issue commercial paper to different tenors below 359 days, and with different coupon structures and other characteristics that best matches investors’ preferences with its regional financing programs. This program was approved by the Superintendencia General de Valores de Costa Rica (SUGEVAL), the Costa Rican securities market regulator.

The commercial paper has been issued following CABEI’s mandate to support and promote local capital markets and integration, via providing investment opportunities to local investors. “The RCP is a big step towards deepening regional capital markets and might be the vehicle that allows and facilitates intra-regional transactions”, said Dr. Nick Rischbieth, Executive President of the regional institution. “The fact that this issuance was possible reflects on the state of maturity that our regional markets are reaching and its consolidation supported by CABEI”, 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, including SME investment using funds raised in local currency.