CAF issues a social bond for EUR 700 million to support its shareholders due to COVID-19
This is the first issue under the new Social Bonds Program, which deepens support for the countries of the region to face the crisis caused by COVID-19.
CAF -development bank of Latin America- issued a benchmark-size bond in Europe for a 5-year term and a 1.625% coupon for a total amount of EUR 700 million, which will be used for the health sector and economic support to face the crisis generated by COVID-19.
This is the first social bond issued by the institution under the Social Bonds Program, which was established during this year and is aligned with international principles for this type of placements. It had a participation of 85 different investors of which 66% correspond to investors classified as Environmental, social, and governance (ESG). The structuring banks were BNP Paribas, Bofa Securities and Credit Agricole CIB.
"The issuance of this bond is added to the efforts we are making to support the countries of the region to respond efficiently to the health and economic emergency generated by COVID-19. Attracting international funds to Latin America is one of the better tools to confront this crisis with guarantees, and it demonstrates the confidence of international investors in CAF ”, said CAF Executive President Luis Carranza.
CAF has carried out, for more than two decades, a strategy of diversification of its sources of financing, through an uninterrupted presence in the global capital markets, which have placed it in a privileged position internationally. The multilateral promotes sustainable development and regional integration, through efficient mobilization of resources for the timely provision of multiple financial services, with high added value, to clients in the public and private sectors of shareholder countries.
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