Ecuador sells first social bond

• Ecuador has become the first sovereign issuer to sell social bonds in the international market, placing $327 million in zero coupon notes to raise money for a housing program.
• The 15-year notes priced at 65.191 to yield 12.25%, down from initial price talk of 12.5%. Ecuador will pay bondholders $400 million when the notes mature in 2035.
• The Inter-American Development Bank (IDB) said it backed the bond sale with a $300 million guarantee that put international investors at ease and reduced the financing costs for Ecuador.

(Source: Latin Finance)