CABEI places two bonds in the Mexican Capital Market, with an aggregated amount of MXN 4 billion

Tegucigalpa, May 30, 2018- The Central American Bank for Economic Integration (CABEI) placed its 18th and 19th bonds issuances in the Mexican Capital Markets, under its Medium-Term Note Program (MTN).

The total amount of both issuances reached MXN 4.0 billion (approx. US$ 201.9 million), MXN 2.0 billion each, with tenors of 3 and 10 years. The 3 years placement was structured with a floating rate format indexed to the Interbank Equilibrium Interest Rate TIIE-28, with a spread of 1 basic point below such Benchmark; while the 10 years tranche was placed in a zero-coupon format, with a spread of 90 basis points over the Mexican Government Benchmark, considering as a reference the bond that matures on November 13, 2042.

The three years placement with floating format received a total subscription of MXN 2.31 billion, equivalent to 1.5 times the original target amount (of MXN 1.5 billion), allowing to the Bank to upsize the issuance to MXN 2.0 billion; while the ten years placement with zero coupon format, received firm orders for MXN 3.04 billion, equivalent to 2.03 times the original target amount (of MXN 1.5 billion) and also allowed the Bank to increase the size to MXN 2.0 billion, given favorable market conditions.

The three years placement received the participation of a wide range of institutional accounts, including banks, mutual funds, insurance companies, and private banks; while the ten years placement received interest from mutual funds, development banks, pension funds and commercial bank´s treasuries.

Both issuances had the highest local ratings of Aaa.mx and mxAAA by Moody’s y Standard & Poor’s respectively and global ratings of A1 and A.

Dr. Nick Rischbieth, CABEI’s Executive President, said: “the outcome of this transaction reflects CABEI´s strong credit profile, as well as its strong footprint as frequent issuer in the investor´s community of the Mexican Capital Markets.”

CABEI’s CFO, Hernan Danery Alvarado, also added that “these transactions reflect once again the positive perception from investors in Mexico to CABEI´s name and strong credit profile, as well as reinforces CABEI’s role as a multilateral development organization.”

Mexico is an extra-regional member of CABEI since 1992, participation in the Bank’s capital with US$ 306.25 million, which ranks second within the extra-regional shareholders group of the Bank.
CABEI’s international long-term ratings are: A by Standard and Poor’s (positive), A1 by Moody’s (stable), A+ by Fitch Ratings (stable), and AA- by Japan Credit Rating AA- (stable), which confirms as one of the best credits in Latin America.