Global Bank of Panama is roadshowing a dollar covered bond deal this week, according to an official at one of the banks involved in the project. The bank has turned to the asset class in the past, according to a rating action from Fitch in 2006.

Global Bank is said to be on a roadshow until next Monday, 30 April, having mandated Deutsche Bank as bookrunner and HSBC as co-manager.

According to a Fitch rating action from July 2006 Global Bank Corp has already issued covered bonds, with the rating agency then assigning a preliminary BBB- rating to a $85m floating rate covered bond. This was based in part on overcollateralisation levels of 140% in a first year and 150% thereafter, which Fitch said allowed it to assign a preliminary rating two notches higher than the issuer default rating. The collateral was composed of consumer loans granted to retirees, a departure from the mortgage or public sector assets that typically back traditional covered bonds. [Updated]

According to a Global Bank covered bond investor and servicer report dated March 2012, the collateral comprises home loans, the majority of which are for main residences. The aggregate collateral amount is $225.74m, according to the report.

Global Bank is rated A (pan) by Fitch, on stable outlook, according to the issuer.