CAF Kicks Off 2025 with the Largest Bond Issuance in its History Printing USD 2 Billion

CAF – Development Bank of Latin America and the Caribbean – has announced its largest-ever bond issuance in U.S. dollars, a USD 2 billion transaction with a five-year tenor and a coupon of 5.00%. This issuance has now surpassed all previous records and achieved the tightest level underscoring CAF’s ability to consistently raise the bar, navigate diverse markets, and attract strong global investor interest. The issuance drew an unprecedented demand from investors with an orderbook surpassing USD 13.6 billion (excluding interest from Joint Lead Managers), setting a historic record for the institution.

This transaction builds on a series of record-breaking achievements in 2024, during which CAF secured over USD 7 billion through multiple landmark issuances, each surpassing the record set by the previous one. In January, CAF issued a USD 1.75 billion benchmark, its largest-ever issuance at the time, matching the size achieved in October 2023. Later in the year, CAF entered the Australian market with an AUD 500 million issuance, setting a new record as the largest bond ever issued by a Latin American institution in that market. Finally, in September, CAF launched a USD 1 billion "no-grow" benchmark that achieved 10 times oversubscription, resulting in the institution’s largest orderbook at that time.

The robust demand for this latest issuance also reflects the recent affirmation of CAF’s long-term credit rating by Fitch Ratings at AA- with a stable outlook, a recognition of the institution’s strong financial position and consistent track record in fulfilling its regional commitments.

Despite the challenges posed by global economic and geopolitical uncertainty, this transaction attracted approximately 200 investors, including central banks, fund managers, and bank treasuries, further emphasizing CAF’s strong credit appeal.

Bank of America, Deutsche Bank, J.P. Morgan Securities PLC, and Scotiabank acted as Joint Lead Managers for the transaction, reinforcing the global confidence in CAF’s credit strength.

CAF continues to diversify its funding sources, maintaining uninterrupted access to global capital markets for over three decades. This strategic approach solidifies CAF’s role as a reliable partner in advancing the region's economic development.