CAF bond garners historical demand in the United States debt market

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.