Interbank issues US$15mn in leasing bonds

Thursday, August 7, 2003

Peru's fourth largest bank Interbank has issued another US$15mn in three-year leasing bonds, following a US$15mn issue in July, the bank said in a statement.

Demand for the bonds was strong, as was the case for the July issue. This time round demand was 3.4 times higher than supply, giving Interbank a 2.98% nominal interest rate.

The bank's funding strategy is to take advantage of the low interest rates on the local capital market and also to match its assets through the bond issues, general manager Ismael Benavides said recently.

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Interbank plans to issue subordinated bonds worth US$30mn and mortgage bonds worth between US$10mn and US$15mn later this year.

Further leasing bond issues this year will depend on interest rates on the local capital market and the performance of the bank's leasing unit, an Interbank executive told BNamericas.

Interbank is Peru's fourth largest bank both in terms of loans and deposits.