Tegucigalpa issues $375 million in international bonds

The Tegucigalpa Municipal District (AMDC) has successfully issued $375 million in international bonds, making it the first municipality in Central America to access the international capital markets directly. J.P. Morgan Chase served as the sole placement bank for the transaction, which attracted approximately $600 million in offers, representing 1.6 times the issued amount.

The funds are designated for two primary purposes: restructuring municipal debt with local banks to reduce monthly payment pressure and financing critical public infrastructure. A major priority is the completion of the San José dam on the Sabacuante River, a project intended to address the water crisis in Tegucigalpa and Comayagüela. The dam, which is currently 53% complete, is expected to be delivered in 2028 and will benefit over 300,000 residents.

The bond issuance was conducted without a sovereign guarantee from the central government, meaning the municipality assumes full responsibility for repayment based on its own financial capacity and credit ratings. The AMDC received credit ratings of B1 from Moody’s and B- from Standard & Poor’s to facilitate the operation.