Commitment to the well-being of the region
The Republic of China (Taiwan) is one of CABEI’s first non-regional allies and its largest shareholder. Since officially becoming a member in 1992, this country has actively supported the Central American region through cooperation and financing in essential sectors such as agriculture, food security, education, poverty reduction, infrastructure, health and promotion of MSMEs, with accumulated historical contributions amounting to USD238.8 million.
The Republic of China (Taiwan)’s membership strengthened the Bank’s capital structure and fostered the expansion of its shareholder base, serving as a strong reference for other countries to consider joining CABEI. This relationship also allowed the Bank to issue and place bonds for the first time in international markets. By the end of 2023, CABEI has placed 25 bond issues in the Taiwanese capital market, reaching a total of USD3.17 billion. Such activity positions this market as the Bank’s second most relevant source of funds from bond issuance in capital markets.
In addition to its financial contribution, the Republic of China (Taiwan) has played a key role in addressing critical situations in the region. A notable example was the signing of two cooperation contracts with the Bank for a total of USD130 million in 2020 to address the COVID-19 pandemic and boost Central America’s economic recovery. This action represented the most significant contribution made by this member to the region to date.
Another showing of this non-regional member’s commitment to regional growth was the early payment of the first capital installments associated with its two subscriptions under the VIII General Capital Increase, totaling USD8.6 million, made in 2021.
The active participation of the Republic of China (Taiwan) in CABEI’s capital structure has further strengthened its equity base. Its ability to provide extraordinary support has been a key factor in the Bank’s international risk rating upgrade by Standard & Poor’s from “AA” to “AA+”.
CABEI issues bonds worth US $ 250 million in international markets
CABEI has issued two notes at the beginning of year 2019, the first issue in the Uruguayan market and the second issue in the Swiss market.
Tegucigalpa, March 6, 2019 – In line with its financing strategy based on market and currency diversification, CABEI began the year with the placement of notes in the Swiss and Uruguayan markets with a total amount equivalent to US$250 Million.
The first issue took place on February 15 in Uruguay, with an inflation linked note of the country for an amount of UYU 1,631.5 Million, equivalent to US$50 Million. This was a private placement in the Uruguayan market at a 3.15% semiannual coupon with a five-year tenor due in 2024. This is the fifth note that CABEI issues in this market and as such the Bank pursues the strengthening of its presence in the south American region.
Simultaneously on February 25, the second CABEI issue took place in the Swiss market in Swiss Francs, for an amount of CHF 200 Million, and equivalent of US$200 Million, with an annual coupon of 0.20% and a five- year tenor, also due 2024. This is the eleventh issue to take place in the Swiss market from CABEI, in which CABEI has been a frequent issuer during the last several years.
Our executive president Dr. Dante Mossi states that “With these first issues of the year 2019 we stand by our commitment as the development bank with the best credit rating in the Latin-American region, seeking for the best funding sources for the financing of projects that pursue the sustainable development and economic and social development of the Central American region and its member countries”
During the year 2018, CABEI raised an amount equivalent to US $ 1,135 million in the capital markets of Switzerland, Japan, the Republic of China (Taiwan), Mexico, Colombia and Costa Rica, in different local and international currencies, including new structures such as the zero coupon bond in the Mexican market or the first issue of the bank in New Zealand Dollars (NZD).
A solid financing plan for 2019 along with geographic diversification with the entry of Korea as a non-regional member of CABEI, reassures and reinforces its position as the development bank of most relevance and importance in the Central American region, supported by its credit ratings assigned by, Standard & Poor's with A +, Moody's with A1 respectively, with positive outlook and Japan Credit Rating with AA-.
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