CABEI prepares dollar bond return

CABEI prepares dollar bond return

Bonds Debt Capital Markets Corporate & Sovereign Strategy Fixed Income Loans Central America US

CABEI is looking to issue a dollar benchmark bond in the third quarter in a transaction that will likely include a green bond, Dante Mossi, executive president of the Central American development bank, told LatinFinance.

The bond will be CABEI's first dollar benchmark issue since 2012, Mossi said.

CABEI CFO Hernán Danery Alvarado said the bank wants to wait until Moody's reviews its credit ratings in May or June before moving ahead with the bond sale.

"That would possibly give us two AA ratings from two different ratings agencies, allowing us to make a more robust entry to the market," Alvarado said.

Moody's gives CABEI an A1 rating with a positive outlook. S&P Global upgraded CABEI from A+ to AA in March, saying the bank receives solid financial support from its member nations.

The benchmark-size transaction will also include a green bond, Danery said. "It will help us to broaden our investor base and reflect the banks commitment to green issues."

CABE sold roughly $250m in bonds in March this year, with CHF200m ($200m) in Swiss francs and UYU1.63bn ($47.8m) in Uruguayan pesos, after raising approximately $1.14bn in the international markets in 2018.

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