Treasury and Capital Markets

The Treasury Unit is responsible for the Bank's funding sources, liquidity management and investment securities activities, including management of the Bank's interest rate, liquidity, price, and currency risks. Through its Asset Distribution Desk, Bladex also participates in the primary and secondary market to structure and distribute loans in the market.

Bladex does not offer private banking services to the general public, such as loans, savings accounts, or current accounts, and does not receive deposits from the public.

Funding Sources

Bladex’s loans and investment portfolio are financed by interbank deposits taken from Central Banks and financial institutions of Latin America and the Caribbean (the Region), loans or obligations from international commercial banks, and by debt issuances.

Interbank deposits

Deposits are primarily taken from Central Banks and financial institutions from the Region:

  • Time Deposits:  Minimum USD 250,000.
  • Demand Deposits:  Minimum USD 10,000.
  • “At Call” Deposits:  Minimum USD 100,000.  Daily liquidity and interest capitalized daily. 

Borrowings and debt

Short- term borrowings and medium and long-term borrowings and debt taken from financial institutions and investors from North America, Asia, Europe, the Region and Multilateral Development Banks are important funding sources for the Bank’s loan portfolio, because they permit the Bank to diversify its funding sources outside the Region. The Bank uses these borrowings and placements, which generally have longer maturities than deposits, to manage its asset and liability positions.

  • Short Term borrowings: Loans taken from international banks, with maturities up to 365 days. These borrowings are made available to the Bank on an uncommitted basis, for the financing of trade-related loans.
  • Medium Term borrowings and Syndicated Loans: Loans taken from international banks, with maturities longer than 1 year.
  • Repurchase Agreements (Repos): Bladex enters into Repos with international banks using its investment portfolio as collateral, to access a more favorable funding cost.

Bond issuances in the Capital Markets

As an anticipation of future funding needs of the Bank, during 2011 the EMTN program was updated, and non-deal road shows were carried out in several international and Latin American markets, to introduce Bladex as a future issuer.

Euro Medium Term Notes Program (EMTN)

The EMTN has a limit of up to USD 2.3 billion. Notes may be placed on the REG S or 144A markets, may be denominated in different currencies, with maturities from 7 days to 30 years, on a fixed or floating interest rate basis.

Mexico Local Program 

In 2012, Bladex established a dual program in Mexico to issue “Certificados Bursátiles”, with maturities from 1 day to 30 years, up to a maximum of MXN 10,000,000,000. This document is available in Spanish only.  Read Document

Bladex 12

Bladex MXN 2 Billion, March 20, 2015. This document is available in Spanish only.
Read Document

Other Local Programs

In 2007, Bladex established a program in Peru to issue corporate bonds under private offer in New Soles, to be offered to institutional investors in Peru, up to the equivalent of USD 300mm.

Investments and hedging activities

Liquidity Management 

The Bank's liquidity reserves are held in the form of interbank deposits placed with reputable international banks that have A1/P1/F1 ratings from at least two of the major internationally-recognized rating agencies with minimum ratings A1/P1 or A from OECD countries. These banks must have established a correspondent relationship with Bladex. In addition, the Bank's liquidity policy allows for investment in negotiable money market instruments, including Euro certificates of deposit, commercial paper, bankers' acceptances, and other liquid instruments with maturities of up to three years. These instruments must be of investment grade quality with minimum ratings A1/P1 or A from OECD countries, and must have a liquid secondary market.  

Investment Portfolio

The portfolio is comprised of bonds from Latin American issuers, mostly  sovereign risk or state-owned entities. 

Hedging activities

In the normal course of business, Bladex utilizes derivatives (Interest Rate and Cross Currency Swaps) for hedging purposes with respect to its asset (including its investment securities and loans) and liability management activities.

Distribution Desk Unit

Primary Market

Thanks to its regional presence, and knowledge of the Region, as well as its unique position as a supranational, investment-grade rated institution, Bladex is able to structure and distribute syndicated loans for its clients.

Secondary market

Bladex engages in the purchase and sale of loans in the secondary market to optimize its credit portfolio, provide liquidity in the market and better serve its clients.