Should Bladex’s Successful $200 Million AT1 Issuance Change the Outlook for BLX Investors?

• On September 12, 2025, Bladex successfully completed its first international Additional Tier 1 (AT1) capital issuance, raising US$200 million through perpetual, non-cumulative instruments with a 7.50% coupon and an initial seven-year call date, following very strong demand from global institutional investors.
• This debut of a hybrid instrument, with the offering more than three times oversubscribed, is set to strengthen Bladex's capital structure and support ongoing loan growth in line with Basel III standards.
• We'll now explore how this successful AT1 issuance may bolster Bladex's capital base and influence its overall investment outlook.

AI is about to change healthcare. These 31 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

Banco Latinoamericano de Comercio Exterior S. A Investment Narrative Recap

Being a shareholder in Banco Latinoamericano de Comercio Exterior S.A. (Bladex) means believing in the resilience of Latin American trade finance and the bank's ability to consistently grow its loan book and fee income despite an unpredictable macroeconomic backdrop. The recent AT1 capital issuance is a clear positive for Bladex's capital strength, supporting its main growth catalyst, expansion of lending and trade finance activity, while also reinforcing its buffers against potential loan losses that are a key risk in uncertain regional conditions.

Among recent announcements, the second-quarter 2025 earnings report stands out, highlighting year-over-year gains in both net interest income (US$67.74 million) and net profit (US$64.18 million), reinforcing the company's ongoing trajectory of higher earnings. While this earnings momentum is aligned with the capital build from the new AT1 deal, it still depends on underlying loan and fee growth maintaining pace, especially as one-off transactions like the large Staatsolie syndication recede.

By contrast, investors should also be aware that much of Bladex's recent income boost was tied to large, non-recurring transactions, meaning that any slowdown in the deal pipeline could...

Read the full narrative on Banco Latinoamericano de Comercio Exterior S. A (it's free!)

Banco Latinoamericano de Comercio Exterior S. A is projected to reach $403.4 million in revenue and $276.9 million in earnings by 2028. This outlook is based on an expected annual revenue growth rate of 9.6% and an earnings increase of $56.5 million from the current earnings of $220.4 million.

Uncover how Banco Latinoamericano de Comercio Exterior S. A's forecasts yield a $47.33 fair value, in line with its current price.

Exploring Other Perspectives

Simply Wall St Community members have set fair value estimates for Bladex between US$47.33 and US$71, across three different analyses. With regional credit conditions remaining unpredictable, keep in mind how sharply opinions can differ on future performance, explore several viewpoints to round out your research.

Explore 3 other fair value estimates on Banco Latinoamericano de Comercio Exterior S. A - why the stock might be worth just $47.33!

Build Your Own Banco Latinoamericano de Comercio Exterior S. A Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Banco Latinoamericano de Comercio Exterior S. A research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Banco Latinoamericano de Comercio Exterior S. A research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Banco Latinoamericano de Comercio Exterior S. A's overall financial health at a glance.

Interested In Other Possibilities?

These stocks are moving-our analysis flagged them today. Act fast before the price catches up:

• We've found 18 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.
• The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.
• These 10 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com