CABEI Announces Term SOFR As Replacement Reference Rate for Outstanding U.S. Dollar LIBOR-Linked Securities
Honduras – May 8, 2023
Central American Bank for Economic Integration (“CABEI”) announced today that, after June 30, 2023, Term SOFR will be the replacement reference rate for certain outstanding floating debt securities issued by CABEI under its $10 billion Medium-Term Note Program that use U.S. dollar LIBOR as the reference rate and are governed by New York law.
In accordance with the fallback provisions included in the terms of the securities, the applicable tenor of Term SOFR will be the reference rate for calculations of the amount of interest payable with respect to interest periods with reference rate determination dates occurring after June 30, 2023 on the following securities that currently use three-month U.S. dollar LIBOR as the reference rate or will use three-month U.S. dollar LIBOR as the reference rate during a floating rate period:
- Series 97 - U.S.$ 375,000,000 Floating Rate Notes due 2024 (Green Bonds)
- Series 100 - U.S.$ 375,000,000 Floating Rate Notes due 2025
In the case of any of the above securities that require CABEI or its calculation agent to select a successor reference rate following the cessation of the publication of three-month U.S. dollar LIBOR on a representative basis, three-month Term SOFR, has been selected as the applicable successor rate.
The replacement rate, and therefore calculation of the amount of interest payable on the above securities for interest periods with reference rate determination dates that occur after June 30, 2023, will also include the applicable tenor spread adjustment of 0.26161% per annum (as both securities reference three-month LIBOR).
This announcement does not apply to any other securities or other instruments issued by CABEI.