Tue | Aug 22, 2017

NCBCap tapped as local distributor for Honduras corporate bond

Published:Wednesday | August 2, 2017 | 8:00 AMSteven Jackson
Steven Gooden, CEO of NCB Capital Markets Limited.

NCB Capital Markets, through its Cayman subsidiary, recently partnered with American firm Oppenheimer & Company (Opco) as the distributor in the Caribbean for a US$150-million global bond issued by Invatlan, the largest financial services group in Honduras.

The five-year bond, launched on July 21, was oversubscribed.

"Invatlan is based in Tegucigalpa and through its subsidiaries, the company provides a comprehensive range of corporate and retail banking, insurance and other financial services to more than 900,000 clients," said Steven Gooden, chief executive officer for NCB Capital Markets.

The instrument has a coupon of 8.25 per cent and pays interest semi-annually.

Invatlan's core business is mainly focused on two segments - banking, through its subsidiary Banco Atlantida, and insurance, through Seguros Atlantida. The group's subsidiaries are also involved in pension fund administration, brokerage services, outsourcing of back-office operations, warehousing and the provision of technology services.

"Being engaged by Opco is an indication of the confidence they have placed in our regional distribution capabilities," said Gooden, noting that this transaction aligns with NCB's objective of deepening and developing the regional capital markets.

The bond issue coincides with the establishment of NCB Capital Market's regional trading hub in the Cayman Islands.

NCB Capital Markets itself raised $10.2 billion in May for its own purposes. It was also the lead arranger for one of the largest equity offers locally - a dual offer, valued at $5.4 billion, of ordinary and preference shares across the Jamaica and Barbados stock markets on behalf of document company Productive Business Solutions.

NCB Capital Markets, which operates subsidiaries in Cayman Islands, Barbados and Trinidad & Tobago, has been involved in over US$600 million worth of corporate financing and structured products issues, across the region, over the last 12 months.

The Invatlan bond was rated 'B+' by Standard &Poor's and 'B' by Fitch, with a 'stable' outlook from both rating agencies. According to S&P, the Honduras economy grew 3.6 per cent annually for the past two years with similar growth rates projected up to 2018.

steven.jackson@gleanerjm.com