Honduran minor miracle in international markets

Last week Honduras, a poor Central American country with the world’s highest murder rate, made its international bond debut, raising $500 million.

And what a debut it was. Not only was the issue, sold at 7.5 per cent, 2.5 times oversubscribed, it was also pulled off despite Barclays, one of its would-be underwriters, withdrawing.

Neither the country’s weak public finances, the moderate possibility of a coup, or the fact that Honduras – with a rating already deep in junk territory – has been put on on negative outlook by two rating agencies, appeared to have put off investors.

Source: Financial Times