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Bank of the Year, Guatemala: Banco Industrial

Nov 1, 2013

Central America’s shifting landscape for banking offers opportunities for local participants

Guatemala's Banco Industrial set a Central American landmark in October 2012, when it sold a $500 million cross-border bond. The deal was the largest of its kind from a non-sovereign issuer in the region.

The 10-year bond, sold during a period of intense interest from international investors in strong-yielding Latin American debt, drew $4.5 billion in orders from over 250 accounts. That encouraged the bank to increase the deal, which pays a 5.5% coupon, from the $300 million first planned.

For Banco Industrial, the deal was the first step in a strategy to draw in further international investors. As the Central American banking landscape changes - with global banks retrenching and regional players, notably the Colombians, entering - Banco Industrial hopes to increase its own stake in the region.

"The growth opportunities are there today, and if we don't take advantage of them then other banks certainly will," Luis...

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“The crisis has been a setback for reserve diversification."

Jan Dehn, Ashmore Investment Management