The Central American Bank for Economic Integration (CABEI) has made a new issuance in the Mexican capital market for 8,000 million Mexican pesos (MXN). This placement follows the social bond issued last May and was again executed under the dual-tranche format: the first tranche for MXN6,600 million with a term of 3.4 years at a floating rate referenced to the 28-day TIIE, and the second tranche with a term of 9.8 years for MXN1,400 million at a fixed rate referenced to the MBONO maturing in 2034.
The MXN8,000 million bond represents the largest CABEI issuance in this market, accompanied by the largest order book, with total demand exceeding MXN10,667 million, representing an oversubscription of 2.13 times the target amount (MXN4,000 million).
Since its first placement in the Mexican market in 2007, CABEI has carried out a total of 29 issuances, reaching an accumulated amount that exceeds MXN73,103 million. This achievement reaffirms the Mexican market as the Bank’s main source of financing, consolidating CABEI as a prominent multilateral issuer in this market. This reopening represents the Bank’s sixth social bond issuance in Mexico and the seventeenth globally, with an aggregate amount of US$4,183 million.
Gisela Sánchez, Executive President of CABEI, commented: “The Mexican capital market and its investors, for the second time this year, have demonstrated their confidence in CABEI, even in a context of relative volatility in some markets. Financial solidity is fundamental in the strategy to continue mobilizing resources under the best possible conditions for borrowing countries, and the Mexican market is a key partner in achieving this goal.”
The issuance on Friday, August 16th, was rated Aaa.mx and mx.AAA by Moody’s and Standard & Poor’s, respectively. It was structured by Casa de Bolsa Banorte S.A de C.V. and HSBC Casa de Bolsa, S.A. de C.V., with Actinver Casa de Bolsa, S.A. de C.V., participating as a member of the syndicate.
The funds raised will be used to promote sustainable growth in the Bank’s member countries through projects and social initiatives in accordance with CABEI’s Social Bond Framework, contributing to the achievement of the Sustainable Development Goals. (https://www.bcie.org/en/news-and-media/news/article/bcie-reafirma-su-liderazgo-en-el-mercado-de-capitales-de-mexico-con-vigesimonovena-emision-por-8000-millones-de-pesos)
