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 opens the year with its tenth issuance in the Swiss Market for CHF 200.0 million
The Central American Bank for Economic Integration once again issued in Switzerland under its Medium-Term Note program.
Tegucigalpa, January 26, 2018 – The Central American Bank for Economic Integration (CABEI) issued a new fixed rate note with a notional amount of CHF 200.0 million (equivalent to USD 214.1 million), with a tenor of 6.5 years and a coupon of 0.314% in the Swiss Market. CABEI is the first Supranational and Latin American issuer to tap the Swiss market in 2018.
The transaction was announced at 9:00 a.m. Zurich time for a minimum size of CHF 100.0 million and indicative levels over Mid Swap, which ranged from 17 to 22 basis points. Based on positive investor sentiment and constructive market conditions, the issuance received demand from more than 30 accounts within 1 hour, and allowed the issuer to increase the size up to CHF 200.0 million, and to compress the spread to the lowest level of 17 basis point within the initial market guide, which has been the tightest spread ever priced in the CHF market from a LATAM supranational. The final coupon was 0.314%.
Demand came mainly from treasuries and asset managers, followed by insurance companies and pension funds.
With this transaction, the amount issued by CABEI in the Swiss debt capital markets has reached CHF 1,750.0 million, through ten trades since 2010, turning it in one of the most important funding sources available for the Multilateral Bank.
The Executive President of CABEI, Dr. Nick Rischbieth, said: "The favorable price of this transaction demonstrates once again the sound financial position and strong credit perception enjoyed by CABEI among the investor community in Switzerland, who always receive the name<s> </s>with great appreciation and interest”.
It is noteworthy that the markets diversification strategy implemented by CABEI has allowed the issuer to place bonds in 22 currencies and 23 different markets. CABEI ratings are A1 Stable / A Positive / A+ Stable (Moody's / S&P / Fitch).
This announcement does not constitute an offer of securities for sale in the United States or in any other jurisdiction in which such an offer would be unlawful. The securities offered will not be and not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States or outside the United States to, or for the account or benefit of, any U.S. Person, as defined in Regulation S under the Securities Act, absent registration or an applicable exemption from registration requirements.
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