The Central American Bank for Economic Integration (CABEI) announces its offering of Renminbi (RMB) $500 million 3.85% Notes due 2019 in the Formosa Market of Taiwan

Tegucigalpa October 6, 2014. The Central American Bank for Economic Integration (CABEI) announced its public offering of RMB $ 500 million aggregate principal amount of 3.85% Notes due 2019 in the Formosa Market of Taiwan.

Formosa bonds are RMB-denominated bonds listed on the GreTai securities market in Taiwan spearheaded by the Financial Supervisory Commission (“FSC”) as an attempt to develop Taiwan into an offshore RMB center. In less than a year since deregulation, Taiwan has built a substantial pool of RMB deposits and ranks # 2, ahead of Singapore and London, as a RMB center.

With this issuance CABEI becomes the first Latin American issuer to tap the Formosa Bond Market, demonstrating once more its capacity to access the international debt capital markets and contributing to the efforts of the Taiwanese government to promote the country as an offshore center for RMB.

Taiwan has provided CABEI with unfettered access to its domestic capital market, being the 4th largest source of funds after US, Mexico and Switzerland. In 1997, CABEI’s first bond issuance was placed in Taiwan and, in the following years, eight more were executed in that market. All previous issuances by CABEI in Taiwan have been denominated in New Taiwan Dollars (NTD).

The Notes offered under the issuer´s MTN programme in registered form and pursuant to Regulation S of the Securities Act, are listed in the GreTai Securities Market. The transaction will settle on October 17, 2014. CABEI will pay interest on the Notes semi-annually every April and October 17, beginning April 17, 2015. The issuance has a 3.85% coupon, at a price of 100%, with a maturity date of October 17, 2019. The bonds are considered senior and unsubordinated debt and rank pari passu in right of payment with current and future obligations of CABEI. The proceeds from the issuance will be used by CABEI for the extension of credit according to its mandate.

The bank´s Executive President, Nick Rischbieth, spoke to top quality investors, mainly insurance companies, during the bank´s two day road show in Taipei, highlighting the bank´s improvement in credit ratings and  strong  financial performance. He also emphasized to investors CABEI´s long term commitment with the Taiwanese market.

Taiwan became the second extra-regional partner to join the bank in 1992, after it had made a capital subscription equivalent to 7.5% of the bank’s authorized capital. In 2012 Taiwan’s participation in the bank’s authorized capital increased to 10%, becoming the extra-regional member with the highest share of subscribed capital, close to that contributed by the bank’s founding members; a fact that speaks highly of Taiwan’s commitment towards CABEI.

CABEI´s ratings are A1 Stable / A Stable / A Stable (Moody’s / S&P/ Fitch)

This announcement does not constitute an offer of securities for sale in the United States or in any other jurisdiction in which such an offer would be unlawful.  The securities offered will not be and not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States or outside the United States to, or for the account or benefit of, any U.S. Person, as defined in Regulation S under the Securities Act, absent registration or an applicable exemption from registration requirements.