On November 14th, Banpro Grupo Promerica issued $200 million in bonds on the international market for a six-year term under the 144A format.
The bank announced that the issuance was made by Promerica Financial Corporation (PFC), its main shareholder, and that the issue was structured by Bank of America Merrill Lynch and Credit Suisse.
Ramiro Ortiz Mayorga, chairman of the board and CEO of Promerica, explained to Elnuevodiario.com.ni that "...
The Sanchez-Ceren administration plans to issue $800 million in debt securities to repay obligations that will expire next year and another $1.407 million to complement the 2019 national budget.
The Ministry of Finance presented to the Congress next year's Budget project, which includes, among other aspects, adjustments to the fiscal deficit that the government will register next year.
Fitch Ratings has kept the debt rating in foreign currency at "B-", arguing that political tension has been reduced following the pension reform approved in October last year and the budget passed in January of this year.
Fitch Ratings-New York-13 June 2018: Fitch Ratings has affirmed El Salvador's long-term, foreign-currency Issuer Default Rating (IDR) at 'B-' with a Stable Outlook.
Inversiones Simco has placed the first $12 million of $20 million it expects to issue in the Salvadoran securities market, to finance part of the Millennium Plaza mixed-use project.
The securitization fund called Millennium was structured by Ricorp Titularizadora and amounts to $20 million.However, initially $12 million has been placed and the remaining funds will be raised as the works progress.
El Salvador's Congress approved an IDB loan of $350 million to finance the government budget deficit at a 3.25% rate.
The president of the Legislative Assembly, Norman Quijano, stated that " ..." with the conditions offered by the IDB we will have an interest rate estimated at 3.25%, with the bonds we had an average rate of 7 and 8%, the reduction of interests will mean a saving of tens of millions of dollars for the country.' "
In El Salvador, the issuance of up to $3 million in securitization securities has been authorized in order to finance part of an apartment building construction project.
From a statement issued by the Superintendence of the Financial System:
April 24, 2018.The Board of Directors of the Superintendency of the Financial System authorized, on Thursday, April 19, the issuance of securitization securities - participation certificates charged to the securitization fund for property owned by Ricop Titularizadora Torre Sole Blu Uno, for an amount of up to $3 million.
On the local stock exchange Cuscatlán bank has issued five-year dollar investment certificates at a rate of 5.8%.
Elsalvador.com reports that "...This is the placement of the first tranche of the issue "CICUSCA$01", with which the bank is aiming to issue investment certificates worth a total of $150 million in order to obtain efficient financing through the El Salvador Stock Exchange.This amount will be issued at the appropriate time according to liquidity needs."
In El Salvador, preparations are being made for a third securitization to finance the extension works at the Monseñor Romero airport terminal, and the tender will be announced in September.
The Autonomous Executive Port Commission plan's is to use the resources to finance the construction of phase I of the expansion of the passenger terminal.
Fitch Ratings has raised the Salvadoran debt rating to CCC, but warned that political polarization could continue to affect the approval of new long-term loans.
The decision to raise the IDR risk rating in local currency was taken by Fitch Ratings after the government paid interest on Pension Funds Certificates (CIPs) to private pension funds on April 28.
The issue of external debt was placed at 12 year terms and with an interest rate of 8.625%.
From a statement issued by the Ministry of Finance:
February 21, 2017.The Government of the Republic of El Salvador, through the Ministry of Finance and the Central Reserve Bank reports that today a successful issue was made of sovereign bonds (Eurobonds) in the international market for the sum of $600 million.
Of the $100 million in debt that the government intended to place on the local market, offers were received for only $1 million.
The government was not able to place all of the debt securities it intended to, only managing to capture the interest of one bank, which bought $1 million in debt at a one year term and with an interest rate of 6.5%.
The government and the opposition have agreed to approve in the first instance an issue of $550 million, not $1.2 billion as claimed by the administration of Sanchez Ceren.
Although the government insists that there is a need is to issue $1.2 billion to cover short - term debts and solve the liquidity problem it is facing, this first agreement to issue $550 million will serve to"... pay for the electricity subsidy for FODES and the mayoral districts."
The Autonomous Executive Port Commission plans to issue debt in 2017 worth another $68 million, to finance the expansion works of the Comalapa terminal.
This will be the third issue of debt bonds to finance the airport's expansion project.The first was in 2013, in the amount of $58 million, and the second, for $19 million, took place in October 2015.Laprensagrafica.com reports that "...To date CEPA has only reported that using some of these resources, four new waiting rooms, which are expected to be built in the terminal, will be paid for."
The government will auction on the local stock market two series of debt titles with maturities of 325 and 337 days.
The auction will be held on the Stock Exchange of El Salvador, on Tuesday, June 28, and the settlement of securities will be done on Wednesday June 29.