CABEI seeks US$1bn in funding for 2016

martes 13 de octubre de 2015 12:17 GYT

By Paul Kilby

LIMA, Oct 13 (IFR) - CABEI is likely to seek longer bond tenors in a variety of currencies to cover some US$1bn in funding needs next year, said the Honduras-based bank's head of capital markets.

This follows a year in which the Central American development bank sacrificed duration for better pricing in what has been a tough year for emerging-market issuers.

After swapping back to floating-rate dollars, the bank has so far this year enjoyed average funding costs of around 62bp over Libor.

That is considerably tighter than the 92bp it achieved in 2014, Ricardo Rico, CABEI's head of capital markets, told IFR on the sidelines of the IMF meetings in Peru.

"It is very difficult for a single A credit to get (all-in) cost of funding at 60bp over Libor, at least during the current year" said Rico.

"Single A curves for banks in the US are closer to 90bp."

Average duration on its bonds for 2015, however, was just 4.4 years versus 9 years in 2014.

CABEI is now considering private placements to cover the remaining US$143m it needs to raise this year, and these could extend 2015 duration through longer tenors, Rico said.   Continuación...