CABEI issues its return bond in the Swiss market after one year and its first as a AA rated institution
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CABEI makes its twelve issuance in the Swiss market for an amount of CHF 150 Million, and a 5 year tenor, turning it into a successful return that favorably repriced its entire curve and reopened the CHF market for Latin-American issuers
Tegucigalpa, June 5, 2020.- For more than 10-years CABEI has maintained a solid presence in the Swiss market where the Bank has issued historically 12 bonds for a total of CHF 2,100 million, equivalent to USD$ 2,193 million. CABEI issuances in CHF account for almost 22% of current outstanding issues, amounting to USD$ 1,318 Million.
The bank made its come back to the Swiss market as a AA rated institution and the highest credit rating of all of Latin-American with this CHF150 Million issue equivalent to USD$156 million, 5 year tenor and that priced a 0.4050% coupon. CABEI’s solid credit profile and renowned named in the Swiss market allowed the transaction to tighten from announced IPT’s of a high-end MS+105bps to a closing price of MS+95bps.
The issue received a broad and solid investor participation with more than 40 accounts, the distribution amongst the investor base was: 46% Asset Managers, 32% Banks & Private Banks, 10% Insurance companies, 7% treasury accounts and 6% Pension Funds.
CABEI´s Executive President, Dr. Dante Mossi, stated, "This issue confirms the bank´s permanent access to obtain resources under competitive conditions in different financial centers in the capital markets and amidst a financial crisis; In one month period, CABEI has been able to raise funds for almost US $1.3 billion, including the Benchmark bond issuance for US $750 million and the recent bond simultaneously issued in the Formosa market for US $375 million. Undoubtedly, the AA rating, the highest in Latin America, enables us and provides us with the necessary credentials to obtain this variety and amount of financial resources from the international capital markets.
With these funds, we will continue to serve the countries of the Central American region within the framework of the COVID-19 Emergency and Recovery Program that the Bank has created to provide timely support to all beneficiary countries."
Currently CABEI´s credit ratings in an international scale are: Standard & Poor´s with a rating of AA (stable outlook), Moody´s with Aa3 (stable outlook) and Japan Credit Rating (JCR) with AA (stable outlook), reaffirming the Bank´s financial strength as the highest credit rating in Latin America.
