CABEI inches closer to 2018 funding targets

CABEI inches closer to 2018 funding targets

Capital Markets Central America

The Central American Bank for Economic Integration (CABEI) has edged closer to its $1bn external funding needs for 2018, wrapping up a two-part Uridashi transaction in New Zealand and US dollars.

The regional development bank raised roughly $32m among retail investors, placing the four-year NZD-denominated portion at 2.2% and the rest at 2.62%, a source familiar with the financing told LatinFinance on Tuesday.

In September, CABEI also sold debt in Colombian pesos through its global notes program after obtaining enough demand from international investors.

CABEI has raised approximately $865m from various jurisdictions in 2018 and requires up to $200m more to round out the year. The bank has sold debt in Mexican pesos, Japanese yen, Swiss francs and also tapped Taiwan's Formosa market.

S&P Global Ratings in July upgraded CABEI to A+ from A following developments in the bank's constitutive agreement.

The rating agency said over the next two years CABEI's financial profile and capital levels would improve because of an eighth generation capital increase, further loan diversification benefits and the incorporation of callable capital from the Republic of South Korea.

Moody's and Fitch Ratings rate CABEI A1 and A+, respectively.


Photo provided by CABEI/ Twitter