The government of Ecuador has announced its return to international capital markets with a dual Eurobond issuance totaling $4 billion. The Ministry of Economy and Finance stated that the offering included a $2.2 billion bond maturing in 2034 and a $1.8 billion bond maturing in 2039, both carrying an average yield of 8.975%. According to the ministry, this issuance achieved the lowest spread over U.S. Treasury bonds in Ecuador’s history.
In addition, the country is considering a buyback of outstanding Eurobonds due in 2030 and 2035.
The operation saw strong demand from investors, with orders reaching approximately $18 billion from more than 340 participants, resulting in an oversubscription rate of 4.5 times the final size of the deal. This allowed Ecuador to reduce pricing on the new bonds by 62.5 basis points compared to initial price guidance, marking the largest adjustment ever achieved by Ecuador for such a transaction. The investor base was broad and diverse, including global asset managers from America, Europe, Asia, and the Middle East.
The announcement followed meetings held as part of a roadshow in London, New York, and Boston where Ecuadorian officials met with over 100 investors to present their economic program and debt management strategy.
Minister Sariha Moya said: “Under President Daniel Noboa’s leadership, Ecuador is once again seen as a serious and reliable partner; this return marks the beginning of a transparent and long-term relationship with investors.” She also noted that improving debt terms frees up resources to support economic activity and strengthen a social model prioritizing public works funding and citizen services.
The Ministry reaffirmed its commitment to maintaining open dialogue with international investors.
This announcement is not intended for release or distribution in any jurisdiction where it would be illegal or into or within the United States. The securities referenced have not been registered under U.S. securities laws and may not be offered or sold there without applicable exemptions.
