Price restrictions would be leading Ecuador to aim at shorter maturities to promote its new bond to international investors, said IFR, a financial service of Thomson Reuters.
If it is considered that Ecuadorian bonds to 2024, with a coupon of 7.95%, are traded around 9%, the country would need a shorter maturity time tomeet its target interest rate, which is under 8% .
“… They would be willing to sacrifice (something) in the maturity (…). I would not be surprised if they come out with something between five and seven years,” said an investor who met with government officials. The issue was consulted to the Ministry of Finance, but it did not issue a statementbecause it is something reserved.