Panama bank holds first Latin covered bond

Global Bank, the eighth-largest bank in Panama, indefinitely postponed the first-ever global covered bond from Latin America in the U.S. debt markets, apparently after the deal failed to achieve a low- enough borrowing cost.

Deutsche Bank, the sole underwriter, didn't return calls to comment. According to a banker at a competing firm, Deutsche released few details about the postponement and circulated an opaque email saying "documentation changes" were being pursued "to ensure it is economical for the borrower to move forward."

Global Bank was supposed to sell $200 million of the mortgage-linked bonds, offering investors between 5 and 5.25 percent for bonds due in five years.

Source: Dow Jones