CAF Issues USD 382 Million Green Bond in the Swiss Market
January 19, 2022
CAF kicks off 2022 showing financial strength and efficiency in the mobilization of funds, with the issuance of a green bond in the Swiss market, to be used to finance green growth and other climate change adaptation and mitigation projects. This is the first green bond issued by CAF in 2022 and the second green issue in the Swiss market.
CAF—development bank of Latin America—issued its first green bond of 2022 in the Swiss market, for CHF 350 million (USD 382 million), aimed to finance clean mass transport projects, renewable energy, biodiversity protection, among other initiatives that contribute to climate change adaptation and mitigation.
The bond has been placed by Credit Suisse and Deutsche Bank, has 5-year yield and a 0.45% coupon. It also becomes CAF’s first transaction with Term SOFR coverage, in line with the plan established by the institution to replace the Libor rate.
“This placement of bonds in the Swiss market is a sign of CAF’s ability to attract new international funds at favorable rates to address the main challenge facing the region and the planet: climate change. These funds are part of our intention to become the green bank of Latin America,” said CAF executive president Sergio Díaz-Granados.
The boost received by CAF after the equity enhancement in 2021, as well as the recent change of rating outlook to positive by Fitch, helped underpin the operation and foster demand for the issue. This reflects the work of mobilizing international funds to address key development issues in Latin America and the Caribbean.