Bolivia: BancoSol Completes First Ever Boliviano-Denominated Subordinated Bond P...

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Nov 2009
Bolivia, November, 10 2009 - Bolivian microfinance bank BancoSol's first ever boliviano-denominated subordinated bond placement has opened the market and will lead the way for future bond issues denominated in local currency, BancoSol national finance manager Paola Villanueva told BNamericas.

BancoSol on November 6 issued 50mn bolivianos (US$7.12mn) in bonds on La Paz bourse BBV.

The issue consisted of 5,000 7-year bonds at an average annual coupon of just under 3.99%, according to Villanueva.

"Although investors historically have been wary to invest long-term in boliviano-denominated instruments," she said, "the success of the placement demonstrates not only confidence in BancoSol as an issuer, but also that investors are starting to become more flexible with respect to such instruments."

The issue was the first in a larger US$26mn line, and the bank plans for the next boliviano-denominated issue to come in the first half of 2010, Villanueva added.

The issue was rated AA2 by Moody's, and funds raised will go directly to loans for the microenterprise segment.

BancoSol was first in number of clients, with 125,900, and second in total loan book, with US$335mn, in Bolivia's microfinance industry as of end-September, according to industry association Asofin.



 

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