Banks talk bond with Costa Rica

Banks talk bond with Costa Rica

Bonds Debt Capital Markets Fixed Income Costa Rica Central America

Executives from Citi, Daiwa, Deutsche Bank and JPMorgan recently visited Costa Rica to discuss a possible sovereign bond sale, said a source at the finance ministry.

The administration of President Carlos Alvarado and the Legislative Assembly are still discussing a decree to issue cross-border bonds, but they could reach an agreement by the end of July, the source said.

Alvarado's Acción Ciudadana party wants legislators to approve the sale of $6bn in international notes over the next five years. Members of the opposition on the finance committee are sticking to demands for a smaller sale of $2.5bn to $3bn, the source said.

Either way, Costa Rica could still print at least $1.5bn in bonds before the end of 2019, sources said.

Costa Rica last month borrowed $500m from the Latin American development bank CAF to cover its short-term financing needs. 

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