CAF issues bonds for USD 800 million to promote economic reactivation in Latin America and the Caribbean
November 17, 2022
Investor confidence in CAF's financial strength, as well as its efficiency in mobilizing resources and promoting initiatives that will improve the quality of life of the people of Latin America and the Caribbean, was reflected in the diversity of investors and demand in the U.S. market.
CAF- Development Bank of Latin America, continues channeling economic resources to promote the economic and social reactivation plans of its 21 member countries with a new bond issue for USD 800 million. This emission has a maturity of 3 years and a coupon of 5.250%, and is in addition to two previous global bond placements in euros and US dollars that were made this year for a term of 5 years, representing a fundamental step towards achieving the 2022 financial plan.
"Latin America and the Caribbean have a financially solid CAF thanks to the commitment of its shareholders with the approval of its capitalization for USD 7 billion and the entry of new countries, which allows us to achieve objectives such as attracting new resources at favorable rates to continue supporting governments when they need us most. In this way, we are consolidating our position as the bank for economic and social reactivation in the region," said Sergio Díaz-Granados, CAF's executive president.
This issue in the US market stands out for the demand from investors, which reached USD 1.1 billion, mainly from fund managers, central banks, pension funds and commercial banks with a geographic distribution in Europe, the Middle East, Africa, the Americas and Asia. The placement was carried out by the banks Barclays, Citigroup, Daiwa Capital Markets and J.P. Morgan.
CAF issues bonds in the main capital markets including the United States, Europe, Japan and Australia. Its bond portfolio has a total of 17 different currencies and its average plan financing in recent years has been USD 4 billion. In addition, CAF has a green and social bond program.
For more than 30 years, CAF has carried out a diversification strategy of its funding sources, through a constant and uninterrupted presence in the capitals’ international markets, which have placed the institution in a privileged global position. The multilateral promotes sustainable development and regional integration providing multiple financial services, of a high added value, to customers from public and private sectors of its member countries.