Cabei makes first dollar foray in Formosa market

jueves 7 de abril de 2016 13:03 GYT

By Paul Kilby

NASSAU, April 7 (IFR) - Honduras-based Cabei raised US$185m from Taiwanese investors on Thursday with its first-ever dollar bond in the Formosa market, the development bank's head of capital markets told IFR.

While the bank has tapped Taiwan accounts to issue in yuan in recent years, a dollar deal made more sense now amid worries about a currency devaluation by China, Ricardo Rico said.

By issuing a Formosa bond in US dollars, the bank is following in the footsteps of boldface US credits such as AT&T and Morgan Stanley.

"It is a huge market," Rico said on the sidelines of the annual IDB meeting being held in the Bahamas. "You don't see Latin American issuers going to the US-dollar Formosa market."

Cabei, rated A1/A/A, was also able to extend its debt maturities beyond 10 years as insurance companies are the principal buyers of such deals.

The bank printed a US$25m 20-year non-call four bond at par to yield 4.40% and a US$25m 30-year non-call five at par to yield 4.55%.

It also sold a US$135m five-year floater that came at three-month Libor plus 50bp.

HSBC was sole lead on the transaction.   Continuación...