FONPLATA returns to the Swiss market with a successful CHF 150 million issue to continue supporting its member countries economic and social recovery.
On Monday, November 1, FONPLATA issued bonds for CHF 150 million (equivalent to USD 164 million) with a 7 year-term and a 0.795% coupon rate. This is the bank's second issuance in 2021 in the Swiss capital market and it stands out for the favorable conditions, both maturity date and coupon rate.
The trust in the mission of the bank and its financial soundness were reflected in the higher demand that enabled to increase the amount of the issuance, confirming the acceptance by Swiss investors. Recently, FONPLATA's risk rating was upgraded to A (with stable outlook) by S&P, and the Bank has an A2 credit rating (with stable outlook) by Moody's.
“In a challenging context of recent macro volatility, FONPLATA has achieved an efficient and very favorable mobilization of resources to promote sustainable development and regional integration”, stated Juan Notaro, executive president of FONPLATA.
Credit Suisse was the underwriter. This operation is part of FONPLATA's resource mobilization strategy to lend in the region under attractive conditions. Additionally, these funds will be channeled to its member countries — Argentina, Bolivia, Brazil, Paraguay, and Uruguay — through the “Support line for the economic recovery to mitigate the effects of the pandemic”, which amounts to USD 1 billion.