CABEI announces its offering of USD 167 MM FRN Notes due 2022 in the Formosa Market of Taiwan
This is the 6th time CABEI taps the Formosa market since its debut, and the 15th issuance in Taiwan since its debut back in 1997, becoming the only Latin American issuer to have come to this market ever.
Tegucigalpa March 27, 2017.- The Central American Bank for Economic Integration (CABEI) announced its public offering of USD 167 million aggregate principal amount of FRN Notes due 2022 in the Formosa Market of Taiwan. The notes were issued directly in USD with a spread over 3ML of 100 bps, which means a 50bps reduction vs the price of its last FRN in this market back in April 2016.
Formosa bonds are TWD, USD or RMB-denominated bonds listed on the Taipei Exchange (“TPEx”) in Taiwan. This is the 6th time CABEI taps the Formosa market since its debut, and the 15th issuance in Taiwan since its debut back in 1997, becoming the only Latin American issuer to have come to this market ever. The issuance demonstrates once again the capacity of CABEI to access different international debt capital markets, and its contribution to the efforts of the Taiwanese government to promote local capital markets.
In 1997, CABEI’s first bond issuance ever was placed in Taiwan in TWD and in the following years, eight more were executed in that market in the same currency. However more recently in 2014, right after the Taiwanese government announced the opening of its RMB offshore center, CABEI returned with a RMB bond issuance, which was followed by another three transactions in that currency, with the last one executed back in September 2016. In addition, this is the second USD denominated issuance executed by CABEI in the Formosa Market.
The Notes were offered under the issuer´s MTN programme in registered form and pursuant to Regulation S of the Securities Act. The bonds will be subject to dual listing, available in the Taipei Exchange and the Luxemburg Stock Exchange. The bonds are considered senior and unsubordinated debt and rank pari passu in right of payment with current and future obligations of CABEI. The proceeds from the issuance will be used by CABEI for the extension of credit according to its mandate.
The bank´s Executive President, Nick Rischbieth expressed his complacency with the transaction and mentioned that “Taiwan has provided CABEI with unfettered access to its domestic capital market, being today the 3d most important source of funds after Switzerland and Mexico”.
Taiwan became the second extra-regional partner to join the bank in 1992, after it had made a capital subscription equivalent to 7.5% of the bank’s authorized capital. In 2012 Taiwan’s participation in the bank’s authorized capital increased to 10%, becoming the extra-regional member with the highest share of subscribed capital, close to that contributed by the bank’s founding members; a fact that speaks highly of Taiwan’s commitment towards CABEI.
CABEI´s ratings are A1 Stable / A Positive / A Positive (Moody’s / S&P/ Fitch), while the note was rated as A1 Stable by Moody´s.
This announcement does not constitute an offer of securities for sale in the United States or in any other jurisdiction in which such an offer would be unlawful. The securities offered will not be and not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States or outside the United States to, or for the account or benefit of, any U.S. Person, as defined in Regulation S under the Securities Act, absent registration or an applicable exemption from registration requirements.
