FONPLATA announces successful first bond issuance
Within the framework of FONPLATA’s sharp growth and its search for new investors, the regional development bank placed for the first time in the international capital markets five-year bonds for a total of CHF 150 million (equivalent to US$ 150 million) with a 0.578% coupon in Swiss francs.
On Monday, February 11, FONPLATA placed its first bond issuance in the international capital markets. Bonds were placed in the Swiss market by Credit Suisse and UBS. Widely accepted by investors, the demand reached CHF 225 million and, as a result, the interest rate ended even more favorable than expected.
Juan E. Notaro, FONPLATA’s Executive President, stated: “The results outnumbered the expectations, with a much higher demand and generating a very favorable interest rate.” Notaro added: “This first bond issuance in the capital markets is a milestone in FONPLATA’s history and will enhance our projects funding capacity enabling us to offer loans under very convenient terms to our member countries.”
In 2016, for the first time, FONPLATA was rated by global credit rating agencies and was assigned an A2 and A- rating by Moody’s and Standard & Poor’s, respectively. The same ratings were assigned in 2017 and 2018, enabling the Institution to access to and provide funds under very favorable conditions. Between 2013 and 2018, more than US$ 1.7 billion was approved for loans to Argentina, Bolivia, Brazil, Paraguay, and Uruguay.
In 2018, after the Charter’s amendment, FONPLATA consolidated as a development bank, being able to establish strategic partnerships with new member countries, as well as with other agencies and multilateral credit banks. Currently, FONPLATA has established alliances with the most important development institutions in Latin America and the world: IDB, CAF, NDB, EIB, AFD, KFW, among others.
The success of this placement of bonds shall enable FONPLATA to continue growing as a regional development bank, increase its lending capacity, and continue bringing development closer to the people.