CABEI taps the Taiwanese market with first ever SOFR FRNs
Following CABEI’s official visit to ROC Taiwan, the bank secures funds for US$85 million.
Tegucigalpa, 25 August 2022. The Central American Bank for Economic Integration (CABEI) issued its first ever SOFR floating rate notes, in its well-known Taiwanese capital market.
CABEI tapped the Taiwanese market yet again with private placements totaling US$85 million, priced at SOFR MS + 100bps for a 5-year tenor. CABEI chose this market to make its SOFR FRN debut given its position as the Bank’s most relevant market in Asia, with 22 placements since 1997 totaling about US$2.7 billion, representing close to 70% of the MDB’s total issuances in this continent.
Such support from Taiwanese investors once again denotes their trust in the Institution, as CABEI has obtained 18 rating upgrades over the past 20 years, on its way to becoming the best rated issuer in Latin America. For more than 20 years, CABEI has carried out a strategy of diversifying its funding sources, through an uninterrupted presence in the international capital markets, which has placed it in a privileged global position.
CABEI’s Executive President Dr. Mossi stated “The Republic of China (Taiwan) through its 30 years of membership has become a solid partner of Central America especially in hard times such as the pandemic and in the aftermath of natural disasters”. Dr. Mossi added “The Bank foresees to continue issuing bonds in this market to finance high impact projects that will improve the overall quality of life in Central America”.
The Republic of China (Taiwan) has been a non-regional member of CABEI since 1992 and has a shareholder position of 11.42% on current capital structure of CABEI, the highest in the Bank. Recently, CABEI’s Executive President and high-level officials arrived at ROC Taiwan to commemorate the 30th anniversary of a strong and fruitful relationship with the Bank.