12th CABEI Issue in Mexican capital Market
CABEI is the main provider of development financing in the Central American region
In the framework of its Medium Term Note (MTN) Program, the Central American Bank for Economic Integration (CABEI) successfully issued 3-year bonds in Mexican capital markets raising 2.0 billion Mexican pesos (MXN), equivalent to US$154 million.
Demand for the bonds was 2.2 greater than the supply issued with more than twenty purchasers participating, including mutual funds, insurance companies and private banks. The issue, which was carried out on November 22, was the largest CABEI issue in Mexican markets to date.
The floating bond traded at 10 basis points above the Balance Interbank Interest Rate, in line with estimates by JP Morgan Investment Bank which led the bond issue process, but lower than previous issues in the market. According to CABEI Executive President, Dr. Nick Rischbieth “the successful issue was a result of the recognized “improvement in CABEI’s credit quality and demonstrates CABEI’s widespread acceptance in the investment community. “
The transaction was rated locally as Aaa.mx and mxAAA by Moody´s and Standard & Poor’s respectively. On an international level, CABEI is rated A2, A, and A by Moody´s Investor Service, S&P and Fitch, respectively.
This bond issue is CABEI’s 12th incursion into Mexican markets; its first issue took place in 2007. To date, CABEI has issued bonds totaling more than 11.0 billion Mexican pesos at terms ranging from 2 to 12 years and with both fixed-rate structures and others tied to different benchmarks, such as UDI, CETES and TIIE.
The successful placement reaffirms CABEI’s favorable reputation among Mexican investors as a sound and credit-worthy Bank, thus reinforcing economic ties between Central America and Mexico.
Mexico has been a CABEI non-regional member since 1992. It recently demonstrated its support for CABEI’s development efforts in the Mesoamerican region by increasing its stake in the Bank from US$122.5 million to US$306.25 million.
CABEI’s Executive President noted that, “This successful bond issue is a result of the commitment that CABEI has demonstrated in Mexico though its multiple issues in the country’s capital markets, which have become an important source of competitive long-term funding for the Bank.”
CABEI is the main provider of development financing in the Central American region.
