El Salvador Returns to Debt Market With Macro-Linked Bond.

El Salvador is returning to global debt markets with a dual-tranche offer, including a bond that will pay investors a higher interest rate unless the government can win credit upgrades or a deal with the International Monetary Fund. The first tranche is raising dollar debt due in 2030 with initial price talks in the low 12% area. The other offering is an interest-only bond with a coupon tied to the nation's credit score or its success in dealing with the IMF. The proceeds of the deal may be used to fund a buyback of existing notes due in 2025, 2027, and 2029. El Salvador's debt has seen significant returns recently, but concerns about fiscal deterioration and an agreement with the IMF have caused the rally to lose steam. Fitch Ratings and Moody's Ratings have El Salvador scored seven notches below investment grade, while S&P Global Ratings has it one level higher. The country last sold bonds during the pandemic at a coupon of 9.5%. [Extracted from the article]