CABEI issues a bond in local Costa Rican currency
This initiative was carried out in support of the development of local debt markets.
Tegucigalpa November 8, 2021-. Reaffirming its interest in the development and integration of domestic markets and becoming a frequent participant in the capital markets of the region, the Central American Bank for Economic Integration (CABEI) issued a bond in Costa Rica for CRC23.8 billion, equivalent to US $ 37.1 million.
This issuance is a 3-year tenor, with a yield to maturity of 2.40%, being this 100 basis points below the sovereign level, it also had a diversified participation of investors, 54% from banks, 19.5% from insurance companies, 12.6% from pension funds, and 12.6% cooperatives, etc.
CABEI´s Executive President, Dr. Dante Mossi highlighted: “We celebrate the issuance of this bond in colones, by which we reaffirm our interest in promoting financial integration in the region, this will allow issuances to have greater depth and liquidity in addition to expanding the investor base offering diversification to investment portfolios of different institutions in Central America”.
Currently, CABEI is supporting two integration initiatives for local capital markets, the first will allow cross-border issuances of public (and eventually private) securities, and the second is FIRCA-CABEI, where investments will be made in a first stage of up to US$150 million in Sovereign issued bonds, their agencies and corporate entities in local markets.
Historically, the Bank has made a total of five issuances in the Costa Rican market in local currency, surpassing US$203 million, with this new issue it reaffirms its interest in participating in this market over the next few years.
This transaction is an initiative that is part of CABEI's Institutional Strategy 2020-2024, which seeks regional integration and development of local debt markets, promoting Central America to become a pillar of its own economic and social development.