CABEI signed a memorandum of understanding with other Central American organizations to strengthen the development of the regional public debt market.
The agreement was signed by the Central American Bank for Economic Integration (CABEI), the Executive Secretariat of the Council of Finance Ministers of Central America, Panama and the Dominican Republic (SECOSEFIN), the Executive Secretariat of the Central American Monetary Council (SECMA) and the Association of Central American Stock Exchanges (BOLCEN).
Standard & Poor's has given a B+ rating to the $1.5 billion debt issue that Costa Rica expects to place in the international market in November.
"Global Ratings today assigned a "B+" rating to the prospective reopening of Costa Rica's notes which have a 7.158% rate maturing in 2045 and a "B+" rating in its planned issuance of notes maturing in 2031, the latter issue still does not have a defined trading rate," the rating agency said on November 8.
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.
The latest risk ratings for the issuance of long-term debt of Central American economies identify Panama as the most attractive country to invest in.
On March 8, Moody's decided to raise its long-term issuer rating in foreign currency from Baa2 to Baa1, arguing that the outlook remains more favorable in the medium term.
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 Nicaraguan government authorized the Finance and Public Credit Ministry to issue $279.7 million in debt securities to cover the budget deficit.
The presidential agreement details that "In order to comply with the provisions of Article 6 of Law 978; Amendment Law to Law 966, Annual Law of the General Budget of the Republic 2018, increasing internal financing through greater issuance of bonds of the Republic of Nicaragua for a total of C$9, 035,600,000."
Explained by obligations with national creditors, between December 2017 and March 2018, the debt increased from $6.487 billion to $6.727 billion, registering an increase of 3.7%.
The Central Bank of Nicaragua reported that as of March 2018 "... Nicaragua's public debt totaled 6.7274 billion dollars, of which 5.6032 billion correspond to public external debt and 1.1242 billion to the debt of the Central Government and the BCN with the national private sector. Public debt increased by 3.7 percent compared to December 2017, mainly associated with an increase in debt with national creditors (US $183.6 million); debt with external creditors registered an increase of 57.2 million dollars."
The Central Bank awarded bills denominated in Córdobas for an amount equivalent to $17 million, and another $8 million in an auction held on April 25, 2018.
From a statement issued by the Central Bank:
April 25, 2018.The Central Bank of Nicaragua (BCN) reports that on April 25, 2018, in the BCN's auction of bills it was decided to:
The Central Bank has managed to issue the equivalent of $48 million in Letters denominated in local currency, at average rates of between 0.36% and 4%, for periods of between 7 days and nine months.
From a statement issued by the Central Bank of Nicaragua:
The Central Bank of Nicaragua (BCN) reported that on February 8, 2017 at the auction of BCN Bills, Letters were awarded worth 1417.4 million cordobas (equivalent to US $48.07 million at face value).The amount was offered was 884.6 million cordobas (equivalent to US $30.0 million face value).
In the next two years the banking group will issue $20 million on the Nicaraguan Stock Exchange in terms of less than one year and $40 million in terms of three to five years.
The issuance registered on the Nicaraguan stock market will be issued with terms of 24 months, in commercial paper and standardized bonds.The program consists of two series: Series A , with a term of up to 360 days (revolving) and Serie B, with terms of three to five years.
As a holder of concessions for duty free shops WISA contributes 7% of the revenues of Tocumen SA, and its inclusion in Clinton list has rattled investors.
An article in Prensa.com reports that yesterday "... the stock broker Citivalores informed the Stock Exchange of Panama that the initial purchaser of the issue, Citigroup Global Markets, decided that the original conditions set out in the purchase agreement had not been met and voided the bond offer made on May 4 and whose closing date was May 11."
For the first time in nine years, the Federal Reserve has raised the benchmark interest rate, by 0.25%, starting off a process of a gradual adjustment which will make credit more expensive.
After seven years of interest rates at historical lows, signs of recovery in the US economy have led the Federal Reserve to announce the first upward adjustment in the federal funds rate, the main reference rate for structuring interest rates in the United States and around the world.
Having for years funded public spending with resources from the Venezuelan government, the country now plans to issue government bonds abroad.
The stable economic growth that Nicaragua has achieved in recent years has enabled the country to improve its financial position and has impacted positively on the country's risk perception on the part of international investors, giving it an important advantage in the event of a possible bond debt issue on the international market.
Between January and April transactions on the Stock Exchange of Nicaragua were registered worth $439 million, more than the $326 million traded in the same period in 2013.
Bonds issued by the Central Bank of Nicaragua are among the most attractive securities, with over $20 million in volumes traded in April alone, according to the Stock Exchange of Nicaragua (BVN).