(Adds background, bond levels)
By Paul Kilby
COSTA DO SAUIPE, Brazil, March 27 (IFR) - Costa Rica has
mandated Bank of America Merrill Lynch and Deutsche Bank for an
international bond of up to USD1bn, the country's vice president
of investment and public credit, Jordi Prat, said on Thursday.
The sovereign, rated Baa3/BB/BB+ by Moody's, S&P and Fitch,
is considering a new 10-year or 30-year bond, or a combination
Costa Rica was last in the market in April 2013 with a
USD1bn dual-tranche issue comprising a 12-year 4.375% USD500m
tranche and a 30-year 5.625% USD500m tranche.
Both bonds have fallen by between 10 to 15 points since
then, and were bid at 89.5 and 85 respectively, according to
Original issue discount restrictions on those bonds mean
that the sovereign is unable to increase the size of those
tranches at the current low dollar prices.
(Reporting by Paul Kilby; Additional reporting by Joan Magee;
Writing by Natalie Harrison; Editing by Marc Carnegie)