NCB Capital Markets partners to distribute US$150M Honduras banking group bond

NCB Capital Markets partners to distribute US$150M Honduras banking group bond

Business reporter

Friday, August 04, 2017

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The Cayman subsidiary of NCB Capital Markets has partnered with Oppenheimer and Company (Opco) to become the Caribbean distributor of a US$150-million global bond raise for Invatlan, the largest financial services group in the Honduras market.

Launched on July 21st, the five-year bond was heavily oversubscribed. The instrument has a coupon of 8.25 per cent, paying interest semi-annually, and is rated “B+” by Standard & Poor’s (S&P) and “B” by Fitch, with a “stable” outlook from both rating agencies.

With more than 900,000 clients, the Tegucigalpa-based company provides a range of financial services through its subsidiaries, including insurance and corporate and retail banking.

Its core business is focused mainly on banking and insurance through its subsidiaries Banco Atlntida and Seguros Atlntida respectively. The group’s subsidiaries are also involved in brokerage services, pension fund administration, warehousing and the outsourcing of back office operations, and providing technology services.

Steven Gooden, chief executive officer of NCB Capital Markets, said the Opco mandate is a sign of confidence and NCB is pleased to participate in the transaction as it aligns well with NCB’s objectives of regional capital market development as well as providing exposure.

“Being mandated by Opco is an indication of the confidence they have placed in our regional distribution capabilities,” he said via news release.

“NCB Capital Markets is pleased to be a part of this transaction, which not only aligns with our objective of deepening and developing the regional capital markets, but also gives regional investors exposure to the largest financial group in a fast-growing economy,” he said.

Over the last two years the Honduran economy grew by 3.6 per cent per annum and has a projected growth of 3.6 per cent and 3.7 per cent for 2017 and 2018, respectively, according to S&P.

This bond issue coincides with the establishment of NCB Capital Markets’ regional trading hub in the Cayman Islands.

Over the last 12 months NCB Capital Markets has been involved in over US$600-million worth of corporate financing and structured product issues across the region. The trading desk also complements its corporate financing business lines and will augment NCB’s role as a market maker of securities throughout the region.

NCB Capital Markets has subsidiaries in the Cayman Islands, Barbados and Trinidad & Tobago.

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