“The idea is to come to market with a social bond and place it between September and the end of this year,” the source close said.

Honduras has already selected banks and is targeting a USD 500-USD 800m size with a 10- year or 20-year maturity, this source said.

“We expect them to go to the market before the end of the year to strengthen their reserve position,” the source familiar said.

The timing of the transaction is likely to be in October, following Honduras’s first IMF review slated for the first week of October, the source close said. This timing could yield better pricing on the new debt, this source said.

“Following the statement of the IMF and meetings held in Washington DC, Honduras is in a very good situation [to issue],” the source close said.

The IMF gave its support to the country’s 2025 draft budget bill, it said in a statement today (10 September). The bill was in line with the economic program supported by the IMF and “paved the way” for the October review, it said.

Honduras has proposed three economic measures in ongoing negotiations with the IMF as part of efforts to secure a stand-by financing agreement, as reported. The three proposals include further increasing the monetary policy rate, accelerating the devaluation of the local currency against the USD, and formalizing a currency auction mechanism through the central bank of Honduras.

The country’s USD 600m 5.625% 2030 bond traded 10 September at 87 to yield 8.5%, according to MarketAxess.  Its USD 700m 6.25% 2027 bond last traded 10 September at 95.8 to yield 8.24%, according to MarketAxess.

A representative from the Honduras Ministry of Finance did not respond to a request seeking comment.