Bladex Successfully Places New Issue In The International Capital Market

Rhea-AI Summary

Banco Latinoamericano de Comercio Exterior (Bladex) announced a successful US$400 million bond issuance in the 144A/Reg S market, which was oversubscribed more than four times. The five-year bonds carry a fixed coupon rate of 2.375%. This issuance demonstrates strong investor confidence in Bladex's business model amid challenging economic conditions, aimed at supporting foreign trade and regional integration in Latin America. Moody's and S&P rated the bonds Baa2 and BBB, respectively. The transaction was facilitated by Bank of America, SMBC Nikko Securities, and Mizuho Securities.

Positive

• Oversubscribed bond issuance by more than four times, indicating high investor demand.
• Bonds rated Baa2 by Moody's and BBB by S&P, reflecting strong credit quality.
• Fixed coupon rate of 2.375%, the lowest among Bladex's prior issues, enhancing funding efficiency.

Negative

• None.

PANAMA CITY, Sept. 14, 2020 /PRNewswire/ -- Banco Latinoamericano de Comercio Exterior, S.A. ("Bladex" or the "Bank"), announced today its third issue in the 144A/Reg S market for US$400 million. The five-year term bonds pay a fixed rate coupon of 2.375%.

Mr. Eduardo Vivone, Executive Vice President of Treasury and Capital Markets, commented: "We are very pleased with the success of this new bond issuance, which was oversubscribed more than four times and attracted investors from the United States, Europe, Asia, and Latin America. Due to the strong demand, the bond could be placed at the lowest coupon of all 144A/Reg S issued by Bladex.  With this transaction, we will continue to strengthen and diversify our funding base, which has categorically demonstrated its high stability and resilience in the current environment."

Mr. Jorge Salas, Bladex CEO, stated: "The strong demand clearly demonstrates investor confidence in the strength and versatility of Bladex's business model to successfully face the challenging global economic environment.  We are aware of the important role that we are called to play in these demanding times that Latin America is going through, and these new resources will enable Bladex to continue supporting its clients in a decisive manner, to fulfill our mission of promoting foreign trade and regional integration.  On a final note, I would like to express our appreciation to the underwriting banks, whose efficient performance was essential for the successful completion of this new transaction."   

Bank of America, SMBC Nikko Securities and Mizuho Securities acted as Bookrunners. The bonds were rated Baa2 by Moody's Investors Service and BBB by S&P Global Ratings.

Bladex, a multinational bank originally established by the central banks of Latin-American and Caribbean countries, began operations in 1979 to promote foreign trade and economic integration in the Region. The Bank, headquartered in Panama, also has offices in Argentina, Brazil, Colombia, Mexico, the United States of America, and a Representative License in Peru, supporting the regional expansion and servicing of its customer base, which includes financial institutions and corporations.

Bladex is listed on the NYSE in the United States of America (NYSE: BLX), since 1992, and its shareholders include: central banks and state-owned banks and entities representing 23 Latin American countries, commercial banks and financial institutions, and institutional and retail investors through its public listing.

For further information on Bladex, please access its website at www.bladex.com  or contact:

Annette vH de Solís - Senior Vicepresident | ALM & Funding
E-mail address: asolis@bladex.com. Tel.: +507-210-8560
Head Office Address: Torre V, Business Park, Ave. La Rotonda, Urb. Costa del Este,
Panama, Republic of Panama

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SOURCE Banco Latinoamericano de Comercio Exterior, S.A. (Bladex)

FAQ

What was the size of Bladex's recent bond issuance?

Bladex's recent bond issuance was for US$400 million.

What is the coupon rate of the bonds issued by Bladex?

The bonds issued by Bladex carry a fixed coupon rate of 2.375%.

How many times was the Bladex bond issuance oversubscribed?

The bond issuance was oversubscribed more than four times.

Who were the bookrunners for Bladex's bond issuance?

The bookrunners for the bond issuance were Bank of America, SMBC Nikko Securities, and Mizuho Securities.

What ratings did Moody's and S&P assign to Bladex's new bonds?

Moody's rated the bonds Baa2 and S&P rated them BBB.