Guatemala issues first 30-year bonds

Guatemala issues first 30-year bonds

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

Guatemala said it raised $1.2bn from a two-part bond deal on May 23, marking the first time the country has issued 30-year notes.

Citi arranged the deal with $500m in 10-year notes at 5.125% and $700m in 30-year paper at 6.25%, the Finance Ministry said in a statement.

Demand reached $3.3bn as 150 investors from Europe, the United States, Asia and Latin America acquired the new notes, the ministry added.

Guatemala's Congress has approved up to $2bn in bond sales this year, with most of the amount already placed in the local market. But some local analysts criticized the sale, saying the government has carried out public spending with little transparency in an election year.

"If this placement is really going to cut our debt costs and improve conditions, that's great, but we know that these operations are going to finance inefficient and corrupt public spending," said a financial analyst in Guatemala.

Voters in Guatemala go to the polls on June 16 to elect a new president and Congress. Incumbent President Jimmy Morales is not allowed to run for a second term.

 

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