Bolibond

24 October 2012 By Raul Gallegos

The Andean nation’s $500 mln bond carries a 5 pct yield. That’s half what investors charge richer Venezuela on similar debt. They may be putting too much faith in Evo Morales. They’d better hope Bolivia’s president respects debt obligations more than private property.

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Bolivia on Oct. 22 agreed to sell $500 million in 10-year international bonds yielding 4.875 percent, the first international bond sale by the Andean country in about 90 years.

The bond offer was managed by Goldman Sachs and Bank of America Merrill Lynch.

The newly-issued Bolivian bonds traded at roughly par, yielding less than 5 percent, on Oct. 23. Venezuela’s 2022 bonds yielded 11.5 percent on the same day.

Bolivia’s economy grew an average of 4.7 percent a year over the past seven years.

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