CAF carries out its first bond issuance in 2024 for USD 1.75 billion

January 17, 2024

The interest from investors with a demand of USD 6.4 billion, the highest in CAF's history, reiterates the market's confidence in the institution's securities and its management for more than 50 years to promote concrete initiatives that improve the well-being of the population and regional integration. 

CAF carries out its first bond issuance in 2024 for USD 1.75 billion
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CAF, Development Bank of Latin America and the Caribbean, completed its first debt issuance in 2024 through a benchmark-sized bond for USD 1.75 billion maturing in January 2029 with a coupon of 5%. This is the bank's second issuance of a record USD 1.75 billion in the last three months. 

The bond received interest indications of USD 6.4 billion, which represents a 3.6 times overdemand by more than 150 investors, making it CAF's largest to date, under the previous criteria. 

The success is attributed to the broad support of investors and the credit quality of CAF; which meant a large granular demand that was distributed as follows: Central Banks and Official Institutions with 44%; Fund Managers, Insurers and Pension Funds with 30%; and Bank Treasuries representing 24%. 

“A very successful dollar issuance to mark the beginning of CAF in the capital markets in 2024, achieving the highest order appetite in the bank's history and a final book of USD 6.4 billion. The participation of more than 150 investors is a testament to the strong market interest in CAF's credit and mandate, to improve the quality of life of Latin Americans and Caribbeans, through sustainable growth and regional integration,” said Gabriel Felpeto, Vice President of Finance of CAF. 

This new issuance was also noteworthy for its geographical diversity, with 60% of the funds coming from Europe, the Middle East, and Africa; 32% from the Americas, and 8% from Asia. The placement banks were Barclays Bank PLC, Citigroup Global Markets Limited, J.P. Morgan Securities PLC, and Nomura International PLC. 

CAF achieves its highest credit rating in its history with the rating agencies Fitch - which affirmed its rating at AA- with a stable outlook last week -, S&P Global, Moody's, and JCR. For over three decades, CAF has been carrying out a strategy of diversifying its financing sources through a continuous presence in global capital markets, which has placed it in a privileged position internationally.  

The multilateral institution promotes sustainable development and regional integration, through efficient mobilization of resources for the timely provision of multiple financial services, with high added value, to clients from the public and private sectors of its shareholder countries.