Details of Guatemala $363 Million Bond Issue

The Finance Ministry presented the issue plan to bankers and investors.

Tuesday, August 25, 2009

Starting September 1st, public auctions will be carried out in the Stock Exchange, in which state companies, banks and private investors will participate.

"Those intending to invest in this securities have two options: they can approach the Central Bank and purchase bonds by themselves, with a minimum of Q10.000 ($1.214), or they can go to a stock broker and invest a minimum of Q5.000 ($607). In both cases, the investment can increase in multiples of Q100 ($12)", reported Prensalibre.com.

More on this topic

Guatemalan Bond Issue Raises Alarms

May 2010

Experts foresee increased interest rates, exchange rate variations, liquidity issues, domestic credit shortages and more inflation.

Investors would be drawn to the superior interest rates paid by government securities, taking money out of the market and into the State Treasury, limiting the capacity of banks to lend to private companies.

Guatemala Sells $193 Million in Bonds

September 2009

Demand for $363 million in Treasury Bonds has been such that in two sessions $243 million have been sold.

$42.5 million were issued in 3 year bonds, paying 7.2%, whereas $9.7 million were sold in 5 year bonds, paying 7.9%. The bulk was $141 million in 11 year securities, which pay 9%.

Guatemala Sells $50 Million in Bonds

September 2009

In the first day of the public offering the market demanded $220 million, with $50 million sold after analysis.

18% was bought by public entities and the remaining 82% by private investors.

"As tender offers were too high, we didn't closed deals through that channel. We closed them through bidding and the Stock Exchange", said Luis Alejandro Alejos, from the Finance Ministry.

Guatemalan Congress Approves $363 Million Bond Issue

August 2009

The legislature approved issuing 3 billion Quetzals in debt ($363 million) in Treasury Bonds.

In addition to endorsing issuing new bonds, the modifications to the Budget Law included dispositions forbidding the transference of funds to entities not specifically listed in the decree.

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