CABEI lowers interest rates on loans granted to member countries
The sovereign public sector floating interest rate will be reduced by 0.10% as of March 1, 2021.
Tegucigalpa, February 20th, 2021.- The Central American Bank for Economic Integration (CABEI) announced today that it will lower by 0.10% the interest rate applicable to current and new sovereign public sector loans that have a variable margin interest rate scheme (LIBOR + margin).
According to CABEI Executive President, Dr. Dante Mossi, the loans eligible for this improvement are approximately 90 operations that include the already disbursed portfolio, the approved loans pending disbursement and the approvals contemplated in the 2021 Annual Plan, which in aggregate amount to approximately US$10 billion.
Dr. Mossi added that this reduction in interest rates on CABEI loans to countries is a reflection of the continuous improvement in the bank's funding costs, particularly in bond issues in international capital markets where we are recognized as the best risk in all of Latin America with an AA rating. The objective is to transfer this benefit to the region's countries, especially considering the current context faced by the countries as a result of the crisis generated by COVID-19, and there is no doubt that this is one more tool that the Multilateral Development Bank has to support economic reactivation efforts.
CABEI presented their first Social Bond for US$500 million in the international capital markets on February 9, 2021 with very favorable financial conditions and with the participation of a broad base of investors, including those specialized in ESG issues.
Dr. Mossi added, "I am convinced that this trend of improvement in our financial conditions will continue, based on our high credit rating which is based on the continued support of our partners as evidenced in 2020 with the implementation of the VIII Capital Increase, the incorporation of new extra-regional partners such as the Republic of Korea, the diversification of our loan portfolio and our preferred creditor status."
CABEI will continue to support the countries' efforts in relation to the design, implementation and execution of programs and projects to address the crisis generated by the COVID-19 pandemic and the adverse effects of climate change in the region due to natural disasters such as tropical storms Eta and Iota.