CABEI issues its 16th bond in the Mexican Capital Markets

On Thursday July 21 2016, 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 2.1 billion (approx. USD 112.5 million); through the issuance of 3.5 year bonds with a floating rate of 8 basis points above the TIIE-28 benchmark. The auction had the participation of 20 institutional accounts, including banks, mutual funds, insurance companies, Afores 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.  

CABEI’s CFO, Hernán Danery Alvarado, commented that “this transaction represents the Bank’s sixteen  foray in the Mexican market since its first issuance in 2007.  To date, CABEI has issued approximately MXN 20.3 billion (approx. USD 1.1 billion) with tenors ranging from two to twelve years at both fixed and floating coupons referenced to several benchmarks such as UDI, CETES, and TIEE”.  

The result of this issuance reaffirms and strengthens the bonds of friendship between Central America and Mexico.  Mexico has been an extra-regional member of CABEI since 1992 and recently increased its equity participation to USD 306.25 million from USD 122.5 million, as a sign of its support to the Bank’s undertaking in the region.

CABEI’s CEO, Dr. Nick Rischbieth, commented: “The funding through the international capital markets has allowed CABEI to consolidate its role as the important development institution in Central America as evidenced by the Bank’s 50% participation in the loan disbursements amongst multilaterals to the region in the last ten years.“  The president highlighted CABEI´s participation in this operation as proof of financial strength, funding diversification and commitment with the capital markets development 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).