The 15-year securities will pay an interest rate of 6.7%, informed the treasury ministry.
“According to the institution, the issue was mostly bought by ‘small, individual investors’, who acquired the bonds through stock brokers; other purchasers were Retirement Funds”, reported Elsalvador.com.
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The treasury has issued 2% less bonds than planned, due to poor investor appetite for these securities.
In the first six months of the year, the Ministry of Finance intended to raise ¢975 billion ($ 1.933 billion) in the local market. However, poor demand for securities in national currency has forced the agency to aim for a figure slightly lower than projected.
The Salvadoran government placed $ 653 million in bonds in the international market on January 25 .
The acquisition was announced at 9:30 am local time (10:30 New York time) and three hours later, demand had reached $ 1,628.9 million, more than double the amount offered by El Salvador, reflecting the strong international interest in acquiring the Salvadorans bonds.
The issuance of Eurobonds, maturing in 2025, was placed on the New York Stock Exchange.
The operation received offers for $3 billion, and the final rate of return stood at 5.875%.
"For the Ministry of Finance and the financial agent the Banco Central de Reserva de El Salvador (BCR), the placement of the $800 Eurobonds in the international market was "successful " because it was carried out in one operation.
The Honduran government has been authorized to issue $250 million in the domestic market, and up to $750 million in sovereign bonds on the international market.
Latribuna.hn reports that "In the edition of La Gaceta on Tuesday 4th of this month, number 32.391, authorization has been granted to 'the Executive to through the Ministry of Finance', to issue bonds 'up to a amount of 750 million US dollars, to be placed on the international capital market. "The Treasury is also authorized to issue a 'domestic debt of securities additional to the amount authorized in the General Budget of Revenues and Expenditures Republic, for fiscal year 2012 in the an amount of 4,900,000 million ' lempiras. "