CAF makes the largest bond issue in its history for USD 1,5 billion
January 19, 2023
Investor confidence in the financial strength and impact of CAF's interventions as the green bank and the economic reactivation in Latin America and the Caribbean, coupled with the recent rating upgrade to AA- by Fitch Ratings, led to a record demand at favorable rates and conditions.
CAF -development bank of Latin America- concluded its first debt issuance in 2023 in the US market, which resulted in the largest placement in its history, through a benchmark size bond for USD 1.5 billion maturing in January 2026 with a coupon of 4.75%. This issue achieved the highest demand in CAF's history with approximately 90 investors registered in the order book for an amount close to USD 2.4 billion.
CAF seized the opportunity of investors’ interest in the recent rating upgrade by Fitch to AA- from A+, and made this new issue, increasing the diversification of the investor base, including fund managers, central banks, institutional investors, among other with a geographic distribution from Europe, the United States, the Middle East and Asia. The placement was carried out by the banks Citigroup, Bank of America, Deutsche Bank and Goldman Sachs.
¨What better way to start 2023 on a strong note than with CAF’s largest trade and orderbook in history. Everything aligned perfectly for this trade with our recent upgrade in credit rating from Fitch Ratings last week (from A+ to AA-) and the positive market tone that we have seen over the last couple of weeks. The strong outcome highlights the extensive support from our investors and how they have viewed the recent developments from CAF including new members and a historical capital increase.” – said Gabriel Felpeto, CAF’s Vice President of Finance.
CAF currently has the best credit rating in its history with the agencies Fitch, S&P Global, Moody's and JCR. In 2022, long-term fund raising amounted to close to USD 4 billion in 30 bond issues in 9 different currencies, with a greater presence in the U.S. and European markets.
For more than three decades, CAF has pursued a strategy of diversifying its sources of financing through an uninterrupted presence in global capital markets, which has placed it in a privileged position internationally. The multilateral promotes sustainable development and regional integration through the efficient mobilization of resources for the timely provision of multiple, high value-added financial services to public and private sector clients in shareholder countries.