IDB Invest expands local currency bond program

IDB Invest expands local currency bond program

Bonds Debt Capital Markets Corporate & Sovereign Strategy Fixed Income Dominican Republic Jamaica Caribbean Central America Paraguay

IDB Invest plans to sell more bonds in Latin American and Caribbean currencies, with an eye to issue in Jamaican dollars and Dominican pesos in the second half of the year, Felipe Britto, treasurer at the multilateral lender, told LatinFinance.

After rolling out a PYG1tn ($142m) guaraní-denominated bond program in December 2018, IDB Invest could issue more local currency bonds in the second half of this year, Britto said.

"We are closely looking at Jamaica and the Dominican Republic, most likely one of the two or both," Britto said.

IDB Invest has not decided how much it will issue in each market, but Britto said they will not likely be "three-figure deals."

Late last year, the IDB's private sector lender sold PYG30bn in local notes at a fixed rate of 6.1%, marking the seventh time it had issued notes in local currencies after similar deals in Mexico and Colombia.

"Being able to help develop the capital markets created a huge impact. Clients were calling and asking us when we were going to be issuing again. We want to have the same approach with Jamaica and the Dominican Republic," Britto said.

IDB Invest also plans to raise 25% of its $1bn funding program in local currencies this year, Britto said.

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