SOGEI website background

Analysis of Costs and Main Investors of Sovereign Debt Issuances in Latin American and Caribbean Countries

Sovereign debt issuances are often assessed in quantitative terms and in terms of their impact on a country’s debt profile. However, behind every debt issuance there are also a series of operational practices which involve engaging with parties such as credit rating agencies, law firms, underwriters, and investors which also warrant assessment. The costs, periodicity, and range of these engagements vary across Latin America and the Caribbean (LAC). This paper aims to illuminate practices surrounding the selection processes, associated costs, and priorities of debt management offices (DMOs) across LAC. By classifying the participating countries in three main categories--large economies that are regular sovereign debt issuers, smaller economies that are also regular issuers and that issued debt in 2020, and smaller economies that are non-regular issuers--the analysis identifies common regional practices, as well as differences among countries. The main purpose of the paper is to present data that may be relevant to LAC countries in assessing their own procedures at the time of issuing debt, and to identify strengths and areas for improvement that may lead to more efficient operational financing practices in the region as a whole.