CABEI Successful debut in Dim Sum Market

Today the Central American Bank for Economic Integration (CABEI) issued CNH denominated Notes under its Medium-TermNote program (MTN program). The supranational organization placed CNH 500 million (USD 80 million) fixed rate notes maturing in 2016.

After completing a non-deal road show to Asia in February, CABEI received strong signals from investor demand for a potential CNH bond; this was reflected in the transaction which had a demand equivalent of CNH 1.1 billion offered by approximately 20 investors from Hong Kong, Singapore, Korea and Taiwan.  The allocation per sector was  82% Fund Managers, 15% Banks, and 3% Private Banking, reflecting the high quality of a purely asian book.

Dr. Nick Rischbieth, executive President of CABEI mentioned that 18 bonds in Asia have preceded this CNH issuance,  "we started in 1997 in Taiwan and since, raised an aggregate amount equivalent to USD 1.3 billion, tapping 6 markets so far". CABEI's CEO added that "Asia is the source of approximately 13% of CABEI's global funding in the global capital markets";  in reference to the importance that the region has within CABEI's geographical funding diversification.

Dr. Rischbieth attended the Roadshow in Hong Kong and Singapour commenting also that "since its inception we have been following the market, and even more closely since the evolution and expansion that it has displayed in the last two years. "CABEI's successful incursion in the CNH market is the first step in a market where CABEI could eventually become a recurring issuer, especially as the investor base in this market continues to grow and the swap market expands further".

With this bond issuance CABEI becomes the first Central American issuer to tap this market, as well as the fifth Latin American issuer and fifth supranational to do so.  CABEI is the main supplier of financial resources for the development of the Central American region.