CABEI announces placement in the Peruvian Market of a PEN 154.5 million (USD 50.1 million) bond with a 5.50% coupon maturing in 2018
This is CABEI’s first incursion in Peru and its sixth placement in South America, proving one more time its capacity to obtain attractive cost of funding in the international capital markets.
Tegucigalpa March 27, 2015. The Central American Bank for Economic Integration (CABEI) announced the placement in the Peruvian market of a 5.50% coupon bond maturing in 2018 for a principal amount in PEN 154.5 million (payable in USD), equivalent to USD 50.1 million. The bond was acquired in its majority by local pension funds, showing one more time CABEI’s capacity for obtaining USD funding at attractive costs (after swap) as well as its ability to diversify its investors base both geographically and by currency. Historically, CABEI has placed bonds in 20 markets through 17 different currencies.
This is the third market in South America where CABEI places a bond. Previously it had placed bonds in Colombia and Uruguay. In the Colombian market CABEI had previously issued three bonds for an equivalent USD 307 million, placing its first bond in 2006 and two tranches in 2009. In 2011, CABEI placed amongst Uruguayan pension funds two structured notes for an equivalent of USD 104 million.
The Notes placed in Peru were offered under the issuer´s MTN programme in registered form and pursuant to Regulation S of the Securities Act, and are listed in the Luxembourg Stock Exchange. Currently, CABEI´s ratings are A1 Stable / A Stable / A Stable (Moody’s / S&P/ Fitch). The bonds have a 5.50% coupon with a maturity for March 28th, 2018; the proceeds from the issuance will be used by CABEI for the extension of credits according to its mandate.
Hernán Alvarado, CFO of CABEI, stated that “The continuous improvement in CABEI’s rating has allowed it access to ever improving funding conditions in the capital markets, which increments its capacity to transfer this benefit to its borrowing countries. This bond placement has also broadened our investor’s base in the South American continent, as well as including investors from the second oldest private pension system in Latin America”.
