CAF issues 1 EUR billion bond with largest order book in its history
March 01, 2023
In its first placement of euro-denominated securities this year, CAF once again received the support of investors, which is a sign of confidence in the institution, management efficiency and financial soundness. This placement follows the largest issuance in CAF’s history of USD 1.5 billion in January 2023
CAF—development bank of Latin America—issued a 5-year bond for a total amount of EUR 1.0 billion and a 4.50% coupon. This issue boasted the highest euro demand in CAF’s history with 107 investors from 22 different countries logged in the order book for an amount close to EUR 2.3 billion.
For more than 30 years, CAF has followed a financing source diversification strategy, through an uninterrupted presence in international capital markets. As a result, we enjoy a privileged global position, and have received our best ever credit rating with rating agencies Fitch, S&P Global, Moody’s and JCR.
“With this issue, we have managed to complete—in the first months of the year—about 50% of the financing plan for 2023. We are delighted to have the continued support of investors in Europe, one of CAF’s main markets. The fact that this operation has had the largest order book in CAF’s history ratifies the institution as a benchmark issuer in Latin America and validates our work in supporting the development of our region,” said Gabriel Felpeto, CAF’s Vice President of Finance .
CAF—development bank of Latin America—continues to channel funds to promote sustainable development and regional integration for the timely provision of multiple, high-value-added financial services to customers in the public and private sectors of its member countries, by financing projects to foster social inclusion, boost productivity and competitiveness of economic sectors, develop economic and social infrastructure, and support the physical and border integration of the region, among other goals.
Pension fund managers, central banks, commercial banks and public institutions led the orders. The managing institutions included BNP Paribas, JP Morgan, Barclays and Credit Agricole. This issue confirms the strong demand for CAF bonds by investors in the international capital market.