CAF returns to Panamanian market with 20-year bond issue

CAF—development bank of Latin America— returned to the Panamanian market with a successful bond issue for a total amount of USD 200 million with a 20-year yield and a 3.50% coupon.

“We are pleased to return to the local market after 10 years, and just as we celebrate 25 years of Panama’s accession to CAF. This successful issue will allow us to channel more funds to this country and the region in general to achieve our purpose of becoming the Green Bank, as well as the bank economic recovery in order to improve the population’s quality of life and promote sustainable development,” said CAF executive president Sergio Díaz-Granados.

This placement led by Citibank will be listed on the Panama Stock Exchange (Latinex) and promotes local capital market development by focusing on the long term and due to the amount, among other factors.

CAF has been engaged in a diversification strategy for its financing sources for the past three decades, through an uninterrupted presence in global capital markets, which has given it a privileged position internationally. On September 19, JCR upgraded its credit rating to AA+ with a stable outlook, the highest rating for a Latin American issuer; and in June of this year S&P Global upgraded CAF’s rating to AA- with a positive outlook.

CAF promotes sustainable development and regional integration through efficient funds mobilization for the timely provision of multiple high-value-added financial services to clients in the public and private sectors of shareholder countries.