Bond rally prompts return to market

摘要

A rally in its bonds this year has spurred Ecuador to seek new cash in the international debt markets as it rushes to plug a widening financing gap caused by the recent dip in crude prices. The oil exporter, which in 2008 tainted its reputation by voluntarily defaulting on debt it declared illegitimate, is expected to return to the market with a new international bond sale worth at least US$1bn as soon as next week. "Given the decline in Ecuador's yields, a new issue is becoming attractive again," said Juan Lorenzo Maldonado, an economist at Credit Suisse in New York. "It is important for them to diversify their sources of funding."