North American Development Bank Completes $250 Million Bond Offering
San Antonio-based international financial institution makes first-time debt issuance to meet future lending needs
Source: North American Development Bank
The North American Development Bank (NADB) today completed a US$250 million bond offering. Deutsche Bank Securities, Inc. managed the sale. The proceeds will be used to support NADB’s lending program. This is the first such offering for NADB, which intends to issue future debt securities as needed to fund its growing loan operations.
Established in 1994, the NADB makes loans and grants and provides technical assistance for the development of infrastructure that promotes a clean and healthy environment in the U.S.-Mexico border region. To date, NADB has contracted US$1.08 billion in loans and grants for 132 projects throughout the border region. These projects are estimated to have a total cost of US$2.99 billion benefiting 12.65 million border residents when fully constructed.
The NADB has a total capitalization of US$3 billion provided by the U.S. and Mexican Governments, of which $450 million is paid-in capital and the remainder, is callable capital. The rapid growth of NADB’s loan portfolio in recent years is requiring it to issue debt in order to support its lending operations, as contemplated by its Charter. “The Bank’s high credit ratings and its success in executing this debt offering at favorable terms is an indicator of the institution’s strength in the eyes of investors moving forward” stated NADB Deputy Managing Director Hector Camacho, referring to the Aaa and AA+ ratings assigned by Moody’s, and Standard & Poor’s respectively. The rating agencies cited strong capitalization and shareholder support among their reasons for their favorable rating of the regional development bank owned equally by the U.S. and Mexico. “We continue to operate with the strong backing of the U.S. and Mexico to carry out our mission of improving the quality of life in the U.S.-Mexico border region through better infrastructure” added Jorge C. Garcés, NADB Managing Director.
Terms of the bond offering: Maturity: February 11, 2020; Coupon Rate: 4.375%; Price: 99.739%; Spread to Benchmark Treasury: +80.75 basis points; Yield: 4.4075%.
More information regarding the NADB and its operations can be obtained at www.nadb.org.
Contact:
Juan Antonio Flores, 210-231-8000,
jaflores@nadb.org