Mexico has been a non-regional CABEI member since 1992 with an authorized stake of USD306.25 million in the Bank's share capital and capital contributions of USD76.56 million, ranking as the third largest shareholder within the group of non-regional members with 5.03%.
The contribution that Mexico channels to the Central American region through CABEI is based on various financial cooperation instruments with Banco Nacional de Comercio Exterior S.N.C. (Bancomext) for a total amount of USD520.8 million. The relationship between the Bank and this country was solidified in 2008 with the launching of the Central American Social Housing Development Program. It falls under the framework of the Mesoamerican Integration and Development Project (formerly Plan Puebla Panamá). Since that date, the Mexican government has made resources available to develop a sustainable market for long-term housing finance in the Central American region that addresses the housing deficit and future needs in this area. Throughout the Program's existence, 59 disbursements have been made through 14 intermediary institutions. In total, 192.7% of the initial financing available has been channeled, benefiting a total of 8,032 low- income households, which can now enjoy a more dignified home.
CABEI Issues its Third Bond in the Uridashi Market and its First Ever AUD/ZAR Dual Tranche Note
CABEI issues its third bond in the Uridashi Market of Japan with a Dual Tranche Note, denominated in Australian Dollars (AUD) and South African Rand (ZAR).
Tegucigalpa, August 8, 2017.- The Central American Bank for Economic Integration (CABEI), offered its first ever AUD/ZAR Dual Tranche Note, denominated in Australian Dollars (AUD) and South African Rand (ZAR). This is the third consecutive year that CABEI taps the Uridashi market, after issuing a note denominated in Turkish Lira (TRY) in 2015, and a Green Bond denominated in ZAR in 2016.
The Notes were sold for a notional amount in South African Rand of 328.7 million (equivalent to USD 24.8 million) with an annual coupon in ZAR of 7.05%; while the Australian Dollars tranche was issued with a notional amount of 36.7 million (equivalent to USD 29.1 million), with an annual coupon in AUD of 2.20%. Both tranches were issued with four (4) years tenor and sold to individual investors in the Uridashi Market of Japan.
Executive President of CABEI DR. Nick Rischbieth indicated that “This transaction reflects the support and confidence in CABEI´s name from the investor´s base in Japan, which contributes to our geographic and currency diversification strategy, and allow us to fund the bank with the most cost effective alternatives to continue with our mission of socio-economic development in the region”.
The Chief Financial Officer of CABEI, Mr. Hernán Alvarado also added that “The Uridashi Market has become a regular market for the Bank, providing an additional alternative to fund our operations. The Bonds issued in this market have provided us with a very attractive cost after swap, optimizing CABEI´s funding costs.”
CABEI has issued bonds in 22 different currencies and 23 different markets, which reflects its diversified funding base through capital markets.
