CAF Consolidates its Presence in the Sterling Market with a £750 Million Benchmark Bond

CAF -Development Bank of Latin America and the Caribbean-, has successfully issued a GBP 750 million 5-year benchmark bond, reinforcing its growing influence in global financial markets. This transaction is CAF’s second sterling-denominated benchmark bond since its return to the GBP market in April 2024, and follows the first issuance of the year, on January 14th, for 2 billion dollars, the largest in its history.

The bond, due in January 2030, carries an annual coupon of 4.875% and a yield of 4.974%, with a spread of 92 basis points (bps). The issuance saw exceptional demand from investors, achieving an oversubscribed order book of over GBP 2.2 billion, including GBP 75 million from Joint Lead Managers (JLMs).

The transaction attracted orders from over 80 high-quality investors, with 40.4% of allocations directed to central banks and official institutions; 15.7% from and bank treasuries; and 40.9% from fund managers. This resounding investor confidence reflects CAF’s robust credit profile and its critical role in fostering sustainable development across Latin America and the Caribbean.

CAF’s Executive President, Sergio Díaz-Granados, highlighted the significance of the issuance, stating that “this bond reaffirms CAF's commitment to mobilizing international capital to support sustainable and inclusive development in the region. The strong investor response underlines the global confidence in CAF’s strategic vision and the potential of the markets it serves”.

This milestone follows CAF’s record-breaking USD 2 billion issuance earlier this year, underscoring its leadership in accessing global capital markets to finance development initiatives in Latin America and the Caribbean.

Additionally, in April 2024, CAF successfully returned to the sterling market after 22 years with a 5-year £1 billion issue, considered an inaugural operation and which attracted strong demand from both UK and international investors. 

For more than three decades, CAF has been pursuing a strategy of diversifying its sources of financing, through an uninterrupted presence in global capital markets, which has placed it in a privileged position internationally. The multilateral institution promotes sustainable development and regional integration through efficient mobilization of resources for the timely provision of multiple, high value-added financial services to clients in the public and private sectors of shareholder countries.