CABEI taps the Swiss Capital Market for the fourth time since 2010

The Central American Bank for Economic Integration (CABEI) launched a bond issuance in the Swiss Stock Exchange, using a book building mechanism under its Medium-Term Note Program (MTN Program).

CABEI issued a bond with a maturity of 8 years, obtaining 180 million Swiss Francs (CHF), or an equivalent of USD201 million. The books were officially open on Tuesday, January 28 with an initial minimum amount of CHF100 million. The books reached the maximum size of CHF180mm, driven by strong demand from insurance companies, asset managers, treasury accounts, pension funds, and private banks; with orders from over 40 accounts.

This is the second longest maturity Latin American CHF offering ever and the first Emerging Markets transaction globally post the FX sell-off of mid-January.

This transaction constitutes the Bank's fourth outing in the Swiss market, after issuing notes on December 2010, January 2013, and November 2013 (two tranches). This successful trade bolsters CABEI's good perception among the Swiss investor base.

CABEI´s funding sources are more diverse than those of most MFDIs including not only bonds, but also official and commercial loans, certificates of deposit, and commercial paper. This transaction reflects CABEI´s improving credit profile as well as its maturing as an institution.  

CABEI´s Executive President, Dr. Nick Rischbieth, stated: "The results of this successful bond issuance widens CABEI's investor base in the CHF curve, as it reiterates the Swiss market as a recurring market for CABEI. The Bank's CHF bonds have allowed CABEI to raise funds at an attractive cost and with tenors that benefit the funding of development projects of CABEI's member countries".