Ecuador Said to Plan IADB-Backed $400 Million Bond for Housing

Ecuador is preparing to sell $400 million in bonds backed by the Inter-American Development Bank to fund the country’s housing program, according to a person with direct knowledge of the transaction, Bloomberg News reported. The so-called “social bond” will be offered to investors this week, said the person, who asked not to be identified because the information isn’t public. The IADB would pay bondholders $300 million in the event of a default, the person added. Ecuador, one of the first South American countries to face mass protests last year, has struggled to meet the terms of an International Monetary Fund deal and to lower costs to access international capital markets -- the country’s benchmark bond due in 2029 currently yields 11.6%, among the highest of its category. Read more