The South American nation taps international debt markets for the second time this year as crude prices boost fiscal inflows.
Ecuador issued additional sovereign bonds in global markets this week, capitalizing on a surge in oil revenue. The government aims to raise USD 1.5 billion to refinance existing debt and fund budget shortfalls, according to officials familiar with the matter.
The sale follows a USD 2 billion bond issuance in January, which was oversubscribed at a yield of 10.75%. Oil prices, a key export for Ecuador, have risen 18% year-to-date, improving the country’s fiscal position and investor appetite for its debt.
Bonds maturing in 2030 traded slightly higher in secondary markets after the announcement, reflecting cautious optimism among investors.