UPDATE 2-Bolivia sells $500 mln bond, pays higher yield -IFR

Thu Aug 15, 2013 3:36pm EDT

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Aug 15 (Reuters) - Bolivia sold an international bond on Thursday for the second time since October, Thomson Reuters unit IFR reported, paying higher interest than the prior issue as it tested market confidence in the South American country's leftist government.

The price of Thursday's $500 million, 10-year bond was 97.794, with a 5.95 percent coupon and a 6.25 percent yield, well above the 4.7 percent yield fetched by Bolivia in its $500 million bond deal of October 2012.

The new issue is rated Ba3/BB-/BB- by Moody's, S&P and Fitch respectively, IFR said. The deal was managed by Bank of America Merrill Lynch and HSBC.

Last October, Bolivia returned to global credit markets with its first international bond issue since the 1920s.

President Evo Morales, in power since 2006, has tightened state control over Bolivia's commodities-based economy with a string of nationalizations, but Wall Street has praised his government's macroeconomic policies as prudent.

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