Google Cloud’s Announcement Boosts Salvadoran Bonds on International Markets.

The Salvadoran bond market saw a significant resurgence on Tuesday following the announcement of Google Cloud’s decision to establish its presence within the country. This move by the tech giant propelled the prices of Salvadoran bonds upwards on the international stage.

In particular, El Salvador’s dollar-denominated bonds outperformed their counterparts in emerging markets, experiencing substantial gains subsequent to Google Cloud’s declaration of plans to set up an office in the nation while delivering digital services, as reported by Bloomberg.

Within this context, the bonds due in 2032 surged by 2.8 cents to reach 74.5 cents per dollar, marking the highest level since November 2021 according to indicative pricing data compiled by Bloomberg.

Likewise, the notes maturing in 2035 also climbed by 1.5 cents to 64.7 cents per dollar, reaching their peak since November 2021.

Google, a global tech behemoth, announced on Tuesday its intention to establish a legal entity and office in El Salvador, alongside the development of digital infrastructure within the country using cloud technology. This decision is part of a strategic seven-year agreement entered into with the administration of President Nayib Bukele.

This news was confirmed through a press release, in which Thomas Kurian, CEO of Google Cloud, expressed their aim to support the Bukele administration in its endeavor to transform the nation into a technological hub for Central America.

In a recent publication, Bloomberg also emphasized that Salvadoran bonds have consistently delivered returns exceeding 70% within the emerging markets, attracting significant interest from major Wall Street investment firms.

This development not only signifies Google Cloud’s confidence in El Salvador’s potential as a technological hub but also demonstrates the country’s growing appeal to international investors, making it a focal point for financial attention in the emerging markets.