(Bloomberg) -- Guatemala is tapping the international capital markets for the first time this year under the new administration of President Bernardo Arevalo.
The Central American country is offering to sell senior unsecured bonds due in seven years and sustainability notes due in 12.5 years, according to information from person familiar with the matter who asked not to be identified.
Related: NEW DEAL: Guatemala $Bmark; 7Y 6.375%a, 12.5Y Sust. 6.875%a
Guatemala last sold dollar-denominated debt in global markets in October. Since then, the nation has seen a new government under Arevalo, which sought to target an investment grade credit rating before its term ends in 2028, the nation’s Finance Minister Jonathan Menkos said in March.
Guatemalan bonds tend to be attractive to investors, as stable macroeconomic policies, including fiscal discipline and low debt to gross domestic product ratios are supportive for the nation’s debt, according to William Snead, a strategist at BBVA in New York.
“The issuance was expected by the market and it should be well received by investors, specially those looking at stable credits on the BB credit bracket that provides an extra yield/spread pick up,” Snead said.
The deal is solely managed by Santander US Capital Markets LLC.
--With assistance from Maria Elena Vizcaino.
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