Swiss market open for EM after Cabei

By Nathan Collins
31 Jan 2014

The Central American Bank for Economic Integration (Cabei) defied a sell-off of emerging market debt on Tuesday to price a curve extending Swiss franc note. The trade’s success, despite other Latin American credits suffering a widening in spreads since January 24, offers a positive sign for further EM issuance in the currency.

“This deal is a good sign for other emerging market borrowers,” said a syndicate banker involved in the deal. “It shows that, even with recent volatility, the Swiss market isn’t writing off emerging market credits.”

UBS priced the Sfr180m ($201m) 1.875% February 2022 bonds at 70bp over mid-swaps, ...

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