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 note with record high amount in Mexican market
The placement of the issue reached a total amount of MXN 5 Billion (equivalent to USD $262.3 Million) which reflect the good perception and position of the Bank in the Mexican market.
Tegucigalpa, June 3, 2019.- The central American bank for economic integration (CABEI) issued today its twentieth bond placement in the Mexican capital markets under its Medium-Term Note program. The institution raised an amount of MXN 5 billion (equivalent to USD $262.3 Million), with a single market placement. This issue reached a total demanded of amount of MXN 10 Billion, which represents an oversupply of twice the issued amount.
The 3-year trench note issued in a floating rate format with a reference in the Interbank Interest Rate of Equilibrium (TIIE) at 28 days, and a spread of 7 basic points under such reference, this placement was converted in to US$262.3 Million. With this transaction CABEI restates its commitment of maintaining its presence with investors in Mexico, one of the most important market for the Bank to access funding resources.
This placement in the Mexican market had the participation of familiar investors to CABEI and new investors as well, such as banks, investment funds, insurance companies and private banks. The issue was rated by Moody´s and Standard & Poor´s on a local scale as Aaa.mx and mxAAA.
Executive President Dr. Dante Mossi stated that “This is the first issuance after the credit rating improvement of S&P to AA in the past month of March; the placement reflects the investors diversification in the Mexican market, its broad confidence in CABEI as a frequent issuer and the ability to seize the positive market conditions.”
Mexico is an extra regional partner in CABEI since 1992, with a stake of US $306.25 Million in the share capital of the Bank, placing it as the second largest share holder in the group of extra regional partners.
Currently the credit rating in an international scale of the Bank are: Standard & Poor´s with a rating of AA (stable outlook), Moody´s with A1 (Positive outlook) and Japan Credit Rating (JCR) with AA (stable outlook), reaffirming the financial strength of CABEI as the best credit rating in Latin America.
