CAF issues largest bond in its history in the European market for EUR 1.5 billion

CAF, Development Bank of Latin America and the Caribbean, achieved the largest placement in its history in the European market, through a benchmark-sized bond for EUR 1.5 billion with a term of 6 years and a coupon of 3.625%. This issue also achieved the highest demand in CAF's 30-year history in the capital markets, for an amount of almost EUR 6.6 billion, compared to the USD 6.35 billion registered in the bond issue carried out in January in the US market.

Amid an international market marked by high volatility in the face of a challenging geopolitical context, the issue was attended by approximately 180 investors from 24 countries, where more than 80% was led by European countries, followed by the Middle East, the Americas and Asia. Fund managers accounted for 35% of the placement, followed by banks with 28%, central banks and public institutions representing 22%, and pension and insurance funds with a 15% share. The bookrunners were BBVA, BNP Paribas, Credit Agricole CIB and Morgan Stanley.

“In less than 40 days of the year, we have achieved a demand of more than USD 12 billion, and we have placed approximately USD 3.5 billion, which evidences the interest of investors around the world in a better future for Latin America and the Caribbean through CAF. This commits us more to continue consolidating ourselves as the green bank and of sustainable and inclusive growth with diverse initiatives that improve the quality of life of the population,” said Sergio Díaz-Granados, Executive President of CAF.

Investor confidence is also reflected in the risk ratings. Japan Credit Ratings Agency (JCR) today affirmed the long-term rating at AA+ with a stable outlook; while Fitch Ratings affirmed on January 10 the long-term rating at AA- with a stable outlook. In 2023, S&P Global raised CAF's long-term rating to AA, from AA-, with a stable outlook. In turn, Moody's Investors Service (Moody's) affirmed the long-term rating at Aa3, with a stable outlook. In this way, CAF maintains its highest ratings in history by all agencies.

CAF has been carrying out, for more than three 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.