CABEI Issues $500 Million in Bonds

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

Monday, September 21, 2009

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.

An article in newspaper highlights the positive credit ratings of the regional entity: "CABEI has four grade 'A' ratings. Standard & Poor's rated it A-, Moody's rating was A2, Fitch Ratings rated it A-, while Japan Credit Rating gave it a rating of A+".

More on this topic

State Debt: Bread for Today, Hunger Tomorrow

December 2012

Several Central American governments have resorted to issuing public debt as a way to continue living beyond their means.

An article by Rafael Delgado Elvir in objectively analyzes the tendency of governments to fall in debt when faced with economic slowdowns. Excess liquidity worldwide makes it very easy to issue bonds of any kind and for states to obtain direct loans.

Example of Regional Market Integration

August 2011

The BCIE has released $67 million simultaneously onto stock markets in Costa Rica, Panama and El Salvador.

Reflecting what can be achieved in terms of volume and attracting international investment, the American Economic Integration Bank has issued bonds in three stock exchanges simultaneously.

Successful Sale of $43 Million in Municipal Bonds

April 2011

At the Salvadoran Stock Exchange, the Multi Sector Investment Bank (BMI) successfully placed CEMUNIs, certificates of municipal debt.

The issuance was for a total $43.965.000, in two trenches, both rated AAA by Pacific Credit Ratings and AA by Fitch Ratings.

Oscar Lindo, Management director at BMI, explained that the funds will be used to change the debt structure of a group of 37 municipalities which joined the trust known as FIDEMUNI, seeking to lower their debt service by extending terms and lowering interest rates.

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.

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