CABEI Successfully Accesses Global Markets with Historic $1.35B Bond

Tegucigalpa, January 19th, 2024.- The Central American Bank for Economic Integration (CABEI) rated Aa3/AA (Moody’s/S&P), is pleased to announce it successfully launched and priced its fourth USD benchmark bond (144A/Reg S) in the last five years, which produced the largest transaction in the institution's history and cemented the credit as an established issuer in the Sovereign, Supranational and Agency (SSA) capital markets. The US$1.35 billion 3-year global benchmark transaction due in 2027, the largest ever for CABEI, underscoring investors' confidence in the issuer's financial strength, renewed leadership, and continually increasing franchise value.

For the second straight year, CABEI sought to take advantage of the increased seasonal liquidity and supportive market conditions of the January issuance window to finance a significant portion of its annual financing needs and reinforce its commitment to issue in the USD markets with at least one public benchmark per year.

The bond priced following CABEI’s largest ever orderbook of approximately US$5.2 billion, attracting the attention of investors across the globe to receive over 150 orders, amassing the greatest participation from Europe based accounts and adding more than 30 new names to the credit; reflecting the intensive year-round marketing efforts of its debt capital markets team. Allocation for this historical deal was predominantly led by Official Institutions/Sovereign Wealth Funds (36%), followed by Central Banks (30%) and Asset Managers (24%), among others.

CABEI’s Executive President Gisela Sánchez stated, “We are very pleased with the reception to our latest USD Benchmark Bond, as it confirms that our commitment to have a decisive impact on sustainable development while maintaining a robust financial position has been well received by our truly global investor base.”

President Sánchez also highlighted the clear support by CABEI’s member countries by stating that “the support of our member countries has been paramount to our success as they continue to confer us with a most preferred creditor treatment, while central banks and institutional investors support our consolidation in the global capital markets”. Finally, CABEI’s newly appointed and first female Executive President emphasized that “the proceeds of this historical issuance will be prudently managed as the Bank is looking to bolster its operational efficiency and impact sustainable development goals; while also attending to the remaining basic infrastructure gap of our developing region.”

The historic transaction resulted in a coupon of 5% and is expected to be listed on both the Main Market of the London Stock Exchange and the Luxembourg Stock Exchange.

This document does not constitute an offer to sell or subscribe for any securities. The Notes have not been and will not be registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws, and, unless so registered, may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The Notes were offered and sold only to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to non-U.S. persons outside the United States pursuant to Regulation S under the Securities Act.