Bloomberg News

Ecuador 2015 Bond Yields Decline to Five-Month Low: Quito Mover

January 29, 2012

Jan. 27 (Bloomberg) -- Yields on Ecuador’s 2015 dollar bonds fell to their lowest in five months as government plans to sell debt in foreign credit markets and an improved oil- production outlook boosted confidence.

The yield on Ecuador’s 9.375 percent dollar bond due 2015 fell 102 basis points, or 1.02 percentage point, to 8.82 percent as of 5 p.m. in Quito, its lowest closing price since Aug. 10, according to data compiled by Bloomberg. The security’s price rose 3.27 cents to 101.77 cents on the dollar.

Ecuador, the Organization of Petroleum Exporting Countries’ smallest member, is working “very quickly” to sell global bonds this year for what would be its first foreign issuance since 2005, central bank President Pedro Delgado said Jan. 23 in an interview. Plans to tap credit markets and hire international oil service providers including Halliburton Co. to increase output are boosting investors’ confidence, said Ramiro Crespo, head of brokerage Analytica Securities in Quito.

“When you buy Ecuador, you buy oil,” Crespo said today in a telephone interview. “Also, Ecuador’s return to international markets, if it happens, would benefit current bondholders.”

President Rafael Correa said Jan. 21 the South American country’s state-owned oil company, PetroEcuador, plans to sign contracts with Halliburton and Schlumberger Ltd. to boost production at two oil fields in the country’s Amazon region.

--Editors: Brendan Walsh, Glenn J. Kalinoski

To contact the reporter on this story: Nathan Gill in Quito at ngill4@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at Papadopoulos@bloomberg.net


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