The bonds, known as a Eurobond (Not to be confused with the Eurobonds backed collectively by all eurozone countries) are expected to yield close to 7% and will be placed for a term of 30 years. The bonds are underwritten by Bank of America, Merrill Lynch and Deutsche Bank.
This is the second issuance of 30-year bonds by Costa Rica, after it issued $500 million in April 2013 which come to maturity in 2043.
Like previous Eurobonds issued by Costa Rica, the bonds are targeted to large investors, as the minimum purchase is $200,000.
Today’s issue will be the third annual issuance of such bonds by Costa Rica under Act 9070, which authorized the executive branch to issue $1 billion worth of bonds per year totaling $4 billion.
The first placement, also for $1 billion, occurred in November 2012. Those bonds come due in 2023. The second was last year, when Costa Rica issued $500 million maturing in 2025 and $500 million maturing in 2043.