According to INS Valores, the issue of Eurobonds would save the Treasury about $18 million each year, and about $396 million due to the difference in local rates versus international rates.
As an assumption, we use two terms that are relevant and attractive for international investors, 10 and 30 years. If the bonds were sold in the international market considering the current yields of sovereign debt bonds with a risk rating similar to Costa Rica and the current yield of the US treasury bonds, for the Treasury the savings at maturity with respect to domestic yields would be around the $396 million,”
said Gabriela Fletes, Director of Markets at INS Valores.
Currently, there is a differential greater than 120 basis points between local yields and external debt.
Among the benefits of the placement of Eurobonds for the country, is the visibility and access to investors and international markets, the possibility of financing at lower interest rates and longer terms compared to what the local market offers, says a report by the entity.
In addition, it would be possible to favor the conditions of the financing according to the conjuncture of international rates and thus reduce the pressure on the interest rates of the internal debt, taking into account that there would be less competition for the resources, in that this capture would be made in the international market.
The legislators approved in the first reading an issue for $1.5 billion, but there is still a second approval so that the government can ask for that debt abroad.