CABEI issues its 14th bond in the Mexican Capital Markets
With this operation CABEI obtains new resources to finance projects and promote economic integration and development in the region.
Tegucigalpa, July 22, 2015- The Central American Bank for Economic Integration (CABEI) placed a bond in the Mexican capital markers under its Medium Term Note Program.
CABEI placed MXN 3.2 billion (approx. US$198.7 million); through the issuance of 4 year bonds with a floating rate of 5 basis points below the Interbank Equilibrium Interest Rate TIIE-28 benchmark. Investor demand reached MXN 4.66 billion, with an oversubscription of 1.7 times the original amount (MXN 2.7 billion); which allowed CABEI to increase the size of the issuance to MXN 3.2 billion at an attractive funding rate. The auction had the participation of 40 institutional accounts, including banks, mutual funds, insurance companies, and private banks. This reflects recognition of CABEI’s credit quality and the good reception amongst investors in this market. The bond had the highest local ratings through Aaa.mx and mxAAA investment grade ratings by Moody’s and Standard & Poor’s respectively.
Dr. Nick Rischbieth, CABEI’s CEO, commented: “the funding through the international capital markets has allowed CABEI to consolidate its role as the most important development institution in Central America as evidenced by the Bank’s 49% participation in the loan disbursements amongst multilaterals to the region in the last ten years.“
CABEI’s CFO, Hernan Danery Alvarado, stated that “this transaction represents the Bank’s fourteen foray in the Mexican market since its first issuance in 2007. To date, CABEI has issued approximately MXN 16.5 billion with tenors ranging from two to twelve years at both fixed and floating coupons referenced to several benchmarks such as Investment Unit, Federal Treasury certificates, and Interbank Equilibrium Interest Rate”.
The result of this issuance reaffirms the good perception that Mexican investors have of CABEI´s solid credit and financial standing, as it further strengthens the liaison between Central America and Mexico. Mexico has been an extra-regional member since 1992 and recently increased its equity participation to US$ 306.25 million from US$ 122.5 million, as a sign of its support to the Bank’s undertaking in the region.
CABEI is the most important capital supplier to finance the development of the Central American region. In 2014 it continued channeling resources to the region, reaching a loan portfolio of US$ 5.7 billion, an amount that reflects the institution’s commitment to the development and integration of its member countries.
Currently, CABEI’s international long term ratings are: A by Standard and Poor’s, A1 by Moody’s, A by Fitch Ratings, and AA- by Japan Credit Rating (JCR).
