CAF Issues Its First Sustainable Bond for EUR 1.5 Billion

CAF -Development Bank of Latin America and the Caribbean— successfully placed its first Sustainable Bond for EUR 1.5 billion with a 7-year term, reaffirming its position as the Green Bank of Inclusive Growth in the region.

This transaction attracted the largest order book in CAF’s history and represents the third strategic milestone of the year in sustainable finance: following the publication of the Sustainable Finance Framework in February and the issuance of CAF’s first Blue Bond in June, this new Sustainable Bond marks the consolidation of an upward trajectory in mobilizing capital for green and social projects in Latin America and the Caribbean.

The transaction generated unprecedented interest, exceeding EUR 14.9 billion in demand and allowing the issuance size to be increased from EUR 1 billion to EUR 1.5 billion, matching CAF’s largest historical euro placement.

This is the fourth benchmark bond issued by CAF in 2025. The transaction featured BBVA, BNP Paribas, Crédit Agricole CIB, Deutsche Bank, and Santander as Joint Lead Managers and pays an annual coupon of 3.125%.

“This historic issuance reinforces international investors’ confidence in CAF and its strategy to become the Green Bank of Inclusive Growth for Latin America and the Caribbean. The resources raised will allow us to expand competitive financing for our member countries, accelerating the green transition, social inclusion, and sustainable development in the region,” said Sergio Díaz-Granados, Executive President of CAF.

The final allocation was primarily distributed among European investors (71%), followed by Asia-Pacific (26%) and the Middle East (3%). By investor type, Asset Managers accounted for 41%, Central Banks and Official Institutions 39%, Banks and Private Banking 13%, and Insurance and Pension Funds 7%.

CAF holds ratings of Aa3 (Positive) from Moody’s, AA (Stable) from S&P, and AA- (Stable) from Fitch. This transaction reaffirms the institution’s commitment to innovative and efficient financial solutions to drive sustainability, climate resilience, and social inclusion in Latin America and the Caribbean.