The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Goldman’s revived Ecuadorian coverage sure sign of new deal

Social housing bond comes just two weeks after mid-January economics report.


Goldman Sachs published an economics report on January 10 informing the markets that it was “re-initiating coverage of the Ecuadorian” economy.

Then, less than two weeks later, the investment bank repackaged a $400 million social housing bond for the country in an innovative structure that enabled the sovereign to price at a lower cost than its existing benchmarks.

The Inter-American Development Bank (IADB) provided a guarantee for $300 million of B-/B- rated Ecuadorian bonds, with a 15-year term and a 7.25% coupon – a much lower comparable yield than the sovereign’s longest-dated bond, a 9.5% 2030 issue, which is trading with a yield of around 10.65%.

Goldman packaged the bond into two tranches: a single- A rated secured tranche offering a 2.6% coupon and a yield of 3.75%, and a single-B unsecured zero coupon tranche that was sold at a deep discount of 65.191 to yield 12.25%.


Euromoney’s sister publication, Global Capital, reported that the bonds’ lower funding costs were based on investors’ expectations of capital appreciation.

And while that isn’t an outlier view – many investors think Ecuador has large potential upside for better valuations, if the country continues to work with the IMF of on its proposed pro-market reform agenda – the country still faces notable challenges.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree