CAF bond garners historical demand in the United States debt market
Investors’ confidence in the financial soundness and impact of the projects CAF funds in Latin America’s sustainable development and integration is the driving force behind the largest bond issuance at favorable rates and terms in the institution’s history.
CAF - Development of Latin America Bank issued a new benchmark bond in the United States debt market with a maturity date of February 2022 and a 3.25 percent coupon in the amount of $ 1.25 billion. The bond obtained the greatest demand level in CAF’s history, with approximately 80 investors registered in the order book totaling some $1.7 billion.
After a "road show" tour of several major United States cities, CAF seized investor´s trust and interest, and issued the new bond to increase the diversification of the institutional investor base, particularly central banks, public institutions and fond administrators from the United States, Europe, Africa, the Middle East and Latin America. Barclays, Goldman Sachs, HSBC and J.P. Morgan are the operation’s underwriter banks.
"Investors’ confidence in the financial soundness and impact of the projects we fund in Latin America in benefit of its most vulnerable population has allowed us to issue bonds at favorable rates and terms to meet the needs of the region, as well as promote long-term initiatives”, said CAF´s Executive President and CEO Luis Carranza.
The operation marks CAF’s second bond issuance this year, following the successful 750-million euro operation in the European market in late January, which also received an excess demand. The bond’s maturity is 5 years with a 0.625 percent coupon.
CAF is betting on the funds to drive its action strategy aimed at achieving sustainable development in its 19 shareholder countries through funding operations that promote social inclusion, as well as enhance productivity and competition of its economic sectors, build up their own socioeconomic infrastructure, and boost border integration in the region.
CAF's more recent content
CAF, ECLAC, IDB and PAHO Promote Sustainable Development in the G20
The Regional Organizations of the Americas congratulate Brazil on its successful G20 Presidency, highlighting its leadership on key issues such as poverty, governance, and climate change. They also reaffirm their commitment to actions that promote equity and development in the region.
Urgent Call for Action to Safeguard Caribbean SIDS at CAF Symposium
As the global community grapples with the escalating climate crisis, Caribbean Small Island Developing States (SIDS) are running out of time to secure critical investments and support needed to strengthen their economies and protect vulnerable communities from the intensifying impacts of climate change. With the window to take decisive action rapidly shrinking, CAF - Development Bank of Latin America and the Caribbean, in partnership with the Commonwealth Secretariat and the Antigua and Barbuda High Commission, brought together key stakeholders for a symposium in London to address the critical vulnerabilities Caribbean SIDS face.