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Costa Rica issues $1 billion worth of foreign debt bonds

April 1st, 2014 (InsideCostaRica.com) Costa Rica is issuing a new round of foreign debt bonds in the amount of $1 billion USD today.

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.

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  • disgusted

    GEEZ! The Costarricenses here selling their collective souls. My question where is all that money going to?? And article about the head administrator of the Social Security here makes $14,000 a month. He is just one of thousands of government official working and retired getting outrageous salaries all on the backs and future of the Tico’s here. I guess they have no problem selling out like this.