CAF Issues USD 750m in Bonds to Promote LatAm Revival
Investor demand exceeded USD 1 billion driven by confidence in CAF’s financial strength and management efficiency over 50 years of fostering an array of programs and projects that improve the people’s well-being and the region’s economic growth when it needs it most.
CAF—development bank of Latin America—continues to attract funds to support the region with a new USD 750-million bond issue. This benchmark size issue has a five-year maturity and closed with a 1.625 percent coupon. The amount of the placement rose from $500 to $750 million due to the interest of investors, who have demanded $1.05 billion.
“We are an unconditional ally of Latin America and continue to work to ensure that countries have access to resources at favorable rates to enable them to implement social and economic revival plans to improve the well-being of the population,” CAF executive president Luis Carranza said. “Investor support with this new issue gives us the strength to drive sustainable development and regional integration when the region needs it most."
The issue in the U.S. market attracted a total of 93 investors, mainly fund managers, public institutions, pension funds and commercial banks. Citi, Daiwa, Goldman Sachs and Nomura
are the operation’s placing banks.CAF is providing its swift and timely support to the region, helping it overcome the current COVID-19 pandemic through a series of financial and technical instruments that complement the measures implemented by governments. The comprehensive strategy envisages a USD 2.5 billion regional emergency credit line to strengthen countercyclical economic measures. Small- and medium-sized businesses, as well as the private sector in general, are also expected to benefit from the liquidity being provided to local development and commercial banks to promote Latin America’s economic recovery, among other facilities.
CAF has developed a diversification strategy for its funding sources over the past two decades, through constant presence in global capital markets, ultimately reaching a privileged status worldwide. This multilateral agency promotes sustainable development and regional integration through efficient mobilization of funds for a timely provision of multiple financial services with high added value, to customers in public and private sectors of shareholder countries.
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