First CAF Green Bond on European Public Market

CAF—development bank of Latin America—has issued its first public green bond on the European market in the amount of EUR 750 million and with a 0.625% coupon, to fund an array of environmental projects that foster energy efficiency, renewable energy, sustainable transport, waste, water and natural resource management and land use. The transaction boasted a EUR 1.2 billion demand, well in excess of the amount originally offered and with more than 70 investors.

Some 61 percent of the orders were made by green investors. The main capitalists included central banks, fund managers and commercial banks. The structuring banks were Bank of America, Merrill Lynch, BNP Paribas and Credit Agricole.

“At a time of global uncertainties, it is important to continue to draw international funds so that Latin America can move towards clean economies that are less dependent on fossil fuels,” CAF executive president Luis Carranza said. “This issue represents CAF’s commitment to green growth, and confirms the trust placed by international investors in our institutional and financial strength.”

To reach its goal of attracting international funding to the region, CAF has issued some $3.4 billion in bonds since 2019.