BCR, the central bank of El Salvador, will announce the underwriter next month, while the bonds sale will begin in the second half of October.
Carlos Acevedo, president of BCR, commented: "There is high demand for Salvadoran debt. Investors are eager to purchase bonds from El Salvador; this is good news and a positive signal".
Source: laprensagrafica.com
More on this topic
October 2009
In the next $800 million Eurobond issue, domestic investors will be able to participate in the primary market.
The public offering will be carried out in the Luxembourg Exchange, detailed Carlos Cácers, Treasury Minister.
"In previous offerings, 100% of the issue was immediately bought by investment banks and sold 24 to 48 hours later to individual investors, most of them Salvadorans, with 1%-2% surcharge", explained Cáceres to newspaper Elsalvador.com.
August 2009
The Eurobond issue in international markets will be executed no later than October 2009.
With this issue, the first since April 2006, the government intends to finance the Global Anti Crisis Plan and finance the State's budget.
Carlos Acevedo, president of the Central Bank, gave details about the issue to newspaper La Prensa Gráfica: "...
July 2009
The objective would be to swap short term Treasury notes, which will expire soon.
In May Congress approved a $1.800 million debt plan, which includes $800 million for facing the due date of short term debts, as well as $650 million for the expiration of foreign debt.
The Salvadoran Foundation for Social and Economic Development(FUSADES), recommended the issuance of $800 million worth of Euro-bonds to cover the expiration of the Treasury Notes. This way, a short term debt would be restructured into a long term one.
March 2010
A proposal will be sent to Congress next week, reported Juan Alberto Fuentes, Finance Minister.
The Monetary Board, part of the Central Bank, has green lighted this operation. It is now in the hands of Congress to decide if the country should issue these bonds.
“Miguel Gutierrez, analyst from think tank CABI explained that if the Government decides to move forward with this transaction, it must do so in the next four months, before the U.S. Federal Reserve changes its monetary policy, closing a now existing ‘liquidity window’”.
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