CAF places GBP 1 billion in bonds to promote sustainable and inclusive growth in Latin America and the Caribbean

April 09, 2024

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 following its return after more than two decades in the London market.

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CAF -development bank of Latin America and the Caribbean- continues channeling resources to support the sustainable and inclusive growth of its 21 member countries with a new placement of benchmark-size bonds for 1 billion pounds sterling (approximately USD 1.268 billion). This issue has a maturity of 5 years and a coupon of 4.750%, and is in addition to previous global issues in euros, US dollars and Australian dollars benchmark size that were made earlier this year for a cumulative amount of around USD 3.7 billion.


The commitment of CAF's member countries to their capitalization has motivated the entry of new shareholders and consolidated the financial strength with the highest credit ratings in the bank's history, which allows us to continue diversifying the investor base and currencies at favorable rates to continue supporting governments and the population in general when they need us most, fulfilling our role of being the green bank and sustainable and inclusive growth in the region

—Sergio Díaz-Granados, Executive president, CAF


This London market issue after more than two decades accumulated an order book with a record amount for a debut (return to market) of a sterling benchmark size issue in the SSA sector (excluding sovereign issues). The transaction is notable for investor demand that reached £4.25 billion, mainly from commercial banks, official institutions, central banks, investors and pension funds. The issue had more than 110 investors, including 18 new investors for the CAF name. It also stood out as the largest issue by a supranational in that market so far in 2024. The underwriters were Barclays, Bank of America and HSBC.

For three decades, the development bank of Latin America and the Caribbean has pursued a strategy of diversifying its sources of financing through an uninterrupted presence in the 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.