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 17th bond in the Mexican Capital Markets
This transactions reflects once again the positive perception from investors in Mexico to CABEI´s name and strong credit profile, as well as the capacity of the Bank to fund projects that promote the region´s economic and development integration with resources obtained through international capital markets.
Tegucigalpa, August 24, 2017- The Central American Bank for Economic Integration (CABEI) placed the bond in the Mexican capital markers under its Medium Term Note Program.
The amount of the issuance reached MXN 2.0 billion (approx. US$113.2 million), with a tenor of 3.2 years and a floating rate of -1 basis points below the Interbank Equilibrium Interest Rate TIIE-28 benchmark. The total order book amounted MXN 2.2 billion, with an oversubscription of 1.5 times the original amount (MXN 1.5 billion), and which allowed CABEI to increase the size of the issuance to MXN 2.0 billion at an attractive funding rate. The auction had the participation of a wide range of institutional accounts, including banks, mutual funds, insurance companies, and private banks.
The issuance had the highest local rating of Aaa and AAA by Moody’s y Standard & Poor’s respectively, which reflects the strong credit profile of CABEI.
Dr. Nick Rischbieth, CABEI’s CEO, said: “CABEI´s strong credit profile, reflected by its credit rating, has allowed the Bank to stand as one of the more active issuers from Latin America and as one of the few international issuers that has actively participated in the Mexican capital market”
CABEI’s CFO, Hernan Danery Alvarado, expressed that “The Mexican Capital Market is one of the most important in CABEI´s funding strategy and is the only market that the Bank has tapped every single year since 2010. CABEI issuances are an attractive alternative for Mexican investors interested to diversify their portfolios with notes of high credit quality”
Mexico is an extra-regional member of CABEI since 1992, participation in the Bank’s capital with US$ 306.25 million, which ranks second within the extra-reginal shareholders group of the Bank.
CABEI is the strategic ally of its member countries in the provision of financial solutions and development of the Central American region. In 2016 it continued funding the central American region and reached a loan portfolio of US$ 6.5 billion, which reflects the institution’s commitment to the development and integration of its member countries.
CABEI’s international long term ratings are: A by Standard and Poor’s (positive), A1 by Moody’s (stable), A by Fitch Ratings (positive), and AA- by Japan Credit Rating AA- (stable), which confirms as one of the best credits in Latin America.
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