NEW YORK, April 27 (IFR) - Guatemalan government officials have started investor calls ahead of an international bond sale as soon as this week, market sources told IFR on Wednesday.
The Central American country has mandated Bank of America as sole lead on the transaction, which is expected to be rated Ba1/BB/BB.
“The country has been doing well,” said Ricardo Adrogue, head of emerging market debt at Babson Capital.
“It has low tax collection over GDP, which is a small negative, but we will be taking a close look [at the deal].”
Guatemala has congressional approval to go ahead with the new issue, which is expected to be around US$500m in size, Rosa Maria Ortega told IFR at the IDB meetings earlier this month.
Guatemala last tapped the international bond markets in February 2013, when it raised US$700m through a rare 15-year bond that priced at a yield of 5%.
Those bonds were trading on Wednesday at 102.05-103.05 to yield around 4.60%. (Reporting by Paul Kilby; Editing by Marc Carnegie)