Successful Eurobond Issuance from El Salvador

The issue was announced at an initial rate of 7.5% and a 30-year term, and $1.097 million was issued, with total demand five times greater than the amount of the issue.

Wednesday, July 31, 2019

The issue was for a 30-year term, maturing in 2050 and with a 7.1246% coupon, informed the Central Reserve Bank (BCR).

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From the BCR statement:

July 30, 2019. The Government of the Republic of El Salvador, through the Ministry of Finance and the Central Reserve Bank, made this July 30 a successful issuance of Sovereign Bonds (Eurobonds) in the international market, for an amount of $1,097 million.

The transaction, which is covered by Legislative Decree No. 217 dated December 21, 2018, published in Official Journal No. 240, is part of the financing approval made by the Legislative Assembly for the payment of bonds maturing in December and the fulfillment of 2019 budget goals.

This issue, which takes place in the first days of the Government of President Nayib Bukele, had as a preparation strategy the visits to investors in London, New York and Boston by authorities of the Ministry of Finance and the Central Reserve Bank; led by Minister Nelson Fuentes, who held meetings and calls with more than 70 investors to let them know the state of the economy of El Salvador, fiscal vision, strategies and projects of the new government, which achieved a positive impact for the credit of El Salvador.

Read full statement (In Spanish).

More on this topic

El Salvador Issues $1 Billion in Debt

July 2020

On July 8, the Salvadoran government issued $1 billion in bonds on the international market at a 9.5% interest rate with a maturity date of 2052.

The resources collected through this international issue are part of the $3 billion debt issuance authorized by the government and will be used to finance the health and economic crisis resulting from the spread of the Covid-19.

Costa Rica Issues $1.5 Billion in Eurobonds

November 2019

On November 12, the debt securities were sold in the international market, and at the end of the negotiation, bonds were issued for $1.2 billion maturing in 2031 and $300 million maturing in 2045.

The negotiation of the public debt issued by the government of Costa Rica in the international market closed at noon on November 12, and the yield for those maturing in 2031 was 6.25% and for those expiring in 2045 was 7.25%.

No More Investor Confidence?

August 2019

Although the goal for this year was to issue $100 million in debt bonds, during the first quarter the Nicaraguan government only awarded $1.1 million, doubting the level of investor confidence.

According to the "Public Debt Report, First Quarter 2019", prepared by the Central Bank of Nicaragua, from January to March regarding Investment Securities in dollars, 1.03 million was issued at an average rate of 5.31% and an average term of 7 months.

El Salvador's Eurobonds Issue Qualified

August 2019

After the country issued $1.097 million in Eurobonds for a 30-year term, Moody's gave them a "B3" rating, while Fitch Ratings assigned them a "B".

Fitch Ratings has assigned a 'B-' rating to El Salvador's $1.097 million notes due January 2050. The notes have a coupon of 7.1246%, the agency said.

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