The Central American Bank for Economic Integration (CABEI) announces its offering of Yuan Renminbi (RMB) $800 million (USD 127.5 MM) 4.75% Notes due 2018 in the Formosa Market of Taiwan

Tegucigalpa March 12, 2015. The Central American Bank for Economic Integration (CABEI) announced its public offering of RMB $ 800 million aggregate principal amount (equivalent to USD 127.5 MM) of 4.75% Notes due 2018 in the Formosa Market of Taiwan. The cost after swapping the transaction into USD is one of the lowest historically for CABEI and certainly the lowest CABEI has achieved since 2007 when the global financial turmoil began.

Formosa bonds are RMB-denominated bonds listed on the 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.

This is the second time CABEI taps the Formosa market and becomes the only Latin American issuer to come to this market, demonstrating once more its capacity to access different   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 of CABEI´s issuances in Taiwan prior to the one executed on October 2014, 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 Taipei Securities Market. The transaction will settle on March 26, 2015. CABEI will pay interest on the Notes semi-annually every March and September 26, beginning September 26, 2015. The issuance has a 4.75% coupon, at a price of 100%, with a maturity date of September 26, 2018. 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 visit to Taipei at the end of 2014, 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.