El Salvador eyes return to cross-border bond market
July 17, 2019 |
Deputy Finance Minister tells LatinFinance bond sale could come in August
El Salvador is preparing a return to the international bond market, Deputy Finance Minister Oscar Anaya told LatinFinance.
The potential issuance comes as the Central American country faces a $800m eurobond payment later this year. El Salvador’s Congress has approved a debt issuance plan of up to $1.3bn in 2019.
Anaya said the government has been working with Citi and Scotiabank on the bond sale, which could come in August.
“It could happen then,” he said during an interview at the IDB annual meeting in Guayaquil, Ecuador. “We have been working towards that idea.”
S&P Global Ratings upgraded its sovereign ratings on El Salvador in December after lawmakers approved the 2019 budget which included the debt plan. The rating agency lifted El Salvador’s long- and short-term ratings to "B-/B" from "CCC+/C", with a stable outlook.
But it also warned that "limited monetary flexibility, a weak economy, and a damaged debt payment culture" could weigh on the country’s credit rating.
El Salvador last tapped the cross-border bond market in February 2017, printing $601m in 8.625% 2029 notes.