Banco Industrial Hybrid Details Emerge

Banco Industrial Hybrid Details Emerge

Central America Structured Finance

Guatemala’s Banco Industrial priced an offering of Tier 1 capital securities worth $30m. The issue, cloaked in secrecy at the time of pricing last week, is made up of 60-year non-call 10 debt securities that switch from fixed to floating-rate notes in year 10. In the first 10 years, they pay an annual coupon of 9%. In year 10, if not called, they jump to Libor plus 600bp, a figure that was calculated by adding the April 25 10-year Libor spot rate of 450bp to a spread of 150bp. The notes, wh

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