Source link : https://theamericannews.net/america/ecuador/ecuador-prices-nature-swap-bonds/
Ecuador sold $1 billion worth of 18-year bonds in the US market on Tuesday as part of a debt-for-nature swap to raise funds for conservation projects, according to a source involved in the deal.
The sovereign issued the 2042 notes through a special purpose vehicle — Amazon Conservation DAC — and priced them at par to yield 6.034%, or 180 basis points over the 10-year US Treasury bonds, the source said.
It opened the initial price talk earlier in the day at around 190 basis points before launching the deal, the person added. Bank of America was the sole bookrunner on the Rule 144A/Reg S offering.
Fitch expects to assign the notes a AA rating, while Moody’s expects to give it a Aa2.
Proceeds from the sale will be used to fund an ongoing tender offer for global bonds issued by the Ecuadorian government, which will receive the repackaged debt in the form of a bilateral facility, according to the ratings agencies.
Ecuador announced the tender offer on December 12, saying it planned to repurchase four series of international bonds maturing between 2030 and 2040 and with $14.2 billion outstanding.
In May last year, Ecuador swapped $1.63 billion worth of 2030, 2035 and 2040 bonds for a $656 million loan from Credit Suisse as part of debt exchange to finance long-term marine conservation projects in the Galápagos Islands.
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Publish date : 2024-12-10 10:18:00
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Author : theamericannews
Publish date : 2024-12-11 02:03:46
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