Record bond issuance by FONPLATA for more than USD 220 million to support member countries’ economic recovery
On February 3, Wednesday, FONPLATA – Development Bank has successfully issued bonds in the Swiss capital market for CHF 200 million (about USD 223 million), with a 5-and-a-half-year term and a 0.556% 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, extend the term, and reduce the interest rate for the benefit of the region. With this operation, FONPLATA cements its presence in the Swiss market as a regular supranational issuer.
This is the second issuance of the Development Bank in the Swiss market, and Credit Suisse was the underwriter. In 2019, FONPLATA issued bonds for CHF 150 million with a 5-year term and a 0.578% coupon rate.
“In such a challenging context for the region, to achieve the issuance of a higher amount, for a longer term, and at a lower coupon rate confirms our privileged position in the capital markets and enables an efficient resource mobilization to promote sustainable development and regional integration”, stated Juan Notaro, Executive President of FONPLATA.
This operation is part of FONPLATA’s funding 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.
FONPLATA’s credit rating is at A2 (with stable outlook) by Moody’s, and at A- (with positive outlook) by S&P.