Ecuador returning to bond market to raise money to plug larger budget gap

reuters.com reported Ecuador’s determination to keep coupons below 8% is forcing it to target a short maturity as it markets a new bond offering to international investors, according to a source familiar with the situation. The oil-exporting nation, rated B3/B+/B, hopes to raise at least US$1bn through the sale, which will help plug a widening budget gap caused by falling crude prices. “They said that in order to stay within their coupon limit they would be willing to sacrifice (something) in terms of maturity,” an investor who met with government officials this week told IFR. “I wouldn’t be surprised if they come with something between five and seven years.” Read Article

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