CABEI promotes Central American capital markets development
CABEI promotes initiatives towards the integration of the Central American region and the development of capital markets and the dissemination of international best practices.
Tegucigalpa, January 28, 2015- The Executive Vice President of the Central American Bank for Economic Integration (CABEI) Alejandro Rodríguez Zamora stated today that CABEI, the financial arm of the region, will collaborate with Governments to contribute to the development of domestic capital markets and its integration with international markets.
The Executive Vice President Rodríguez Zamora, who assisted Latin Finance’s Central America Finance & Investment Forum, explained how CABEI’s initiatives in the field of capital markets consolidate its leading position in channeling resources to the region.
Additionally, he mentioned how the institution participates actively in the capital markets of the region, through debt issuances across countries, thus contributing to the development of yield curves which serve as reference for other issuances, and allowing greater diversification to institutional investors.
He also stated that CABEI promotes markets development through initiatives to promote the integration of markets and the dissemination of best practices and international standards.
In this regard he made reference to the recent approval of CABEIS's Board of Directory, the capital investment in the first Centralized Securities Depository (CSD) for the private sector that will be created in Honduras and which is expected to attract more issuers and investors to the market, given that this institution will allow greater security, transparency and operational efficiency.
A history of successful management
Historically BCIE has placed bonds in the local markets of Central America and Dominican Republic in excess of USD 460 million, with tenors between 3 and 30 years, both in local currencies and USD. As of October 2014, funding from the region represented 8% of CABEI´s total funding. These operations are the result of more than ten years of efforts aimed at reaching some degree of harmonization of regulatory requirements including the registration of the MTN program in each market.
In 1997 the bank together with the then existing global investment bank, Deutsche Morgan Grenfell, established under Irish law the CABEI FUND, which did bring foreign participation into the public debt issued by the regional governments in the international markets, at a time when this participation was non-existent.
In 2011 CABEI issued the first regional bond in Central America, which included investors from El Salvador, Costa Rica and Panama.
