CABEI To Guarantee Corporate Public Offerings

Principal and interests will be guaranteed through a contigency loan granted by the Central American Bank for Economic Integration to the issuing company.

Friday, September 17, 2010

“Partial Credit Guarantees” is the name of the project that CABEI is preparing to assist companies in accessing regulated capital markets in the Bank's member states.

David Castillo's article at, points that "the plan is similar to a Stand By Credit Letter or Safe Credit Letter. CABEI will be there to guarantee, as it will give the company a special credit, while the investor will receive a guarantee contract.

This coverage offered by CABEI will give companies from Central America, Mexico, Argentina, Colombia and Spain, the possibility to raise capital through the capital markets, by providing betting credit risk ratings, thus making the securities more appealing to investors.

More on this topic

BBB A +, B-CC, D. .. ¿AAA?

September 2011

The most perverse thing about the credit risk rating system is that it has weakened (deliberately?) the indispensable analytical skills of investors.

The resignation of Standard & Poor's chief executive of following the agency’s downgrading of the U.S.’s credit rating, reveals the fragility of the whole risk rating system.

CABEI Issues $500 Million in Bonds

September 2009

The Central American Bank for Economic Integration will use the funds for credit operations.

The bonds were sold in the U.S. capital market, and will pay biannual coupons on the 24th of March and September, beginning on 2010. At a 100% price, the coupon is 5.375%, and expires on 2014.

BCIE joins up with ICAP to attract capital to the region

October 2008

BCIE (Central American Bank for Economic Integration) and the British brokerage firm ICAP will create a joint venture company BCIE-ICAP Capital Markets based in Mexico City.

The objective of BCIE-ICAP Capital Markets is to provide an electronic platform so that Central American companies can sell their financial products and overcome credit limitations affecting the region due to the financial crisis.

Corporate funding risk in the region grows

October 2008

Difficulty in accessing funds on the part of issuing companies in Latin America increased last year, Moody's rating agency indicated.

Despite this, the agency emphasized that non-financial issuers in the region have a manageable exposure due to their access to local capital markets, their close relation with the banking sector and the relatively strong economic growth.

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