CAF – Development Bank of Latin America and the Caribbean (LAC), rated Aa3/AA/AA- (pos/stable/stable), has successfully launched its first-ever Blue Bond, raising EUR 100 million to support sustainable and climate-resilient coastal development across Latin America and the Caribbean. The 5-year Blue LAC Bond, due June 11, 2030, carries a 2.975% annual coupon and was fully subscribed by BNP Paribas Cardif.

This milestone transaction was developed in collaboration with the United Nations Development Programme (UNDP), which served as Technical Advisor — leveraging its expertise in the United Nations Sustainable Development Goals (SDGs) and thematic debt to enhance strategic partnerships with Multilateral Development Banks (MDB). The bond was structured and arranged solely by BNP Paribas.

The announcement coincides with CAF’s participation at the United Nations Ocean Conference (UNOC) and the Blue Economy and Finance Forum (BEFF) in Monaco, where CAF reaffirmed its commitment to invest USD 2,500 million by 2030 to support a sustainable blue economy in the region — doubling the initial pledge made at the Lisbon Ocean Conference in 2022.

CAF: Scaling Blue Finance to Protect Oceans and Coastal Communities

The Blue LAC Bond is the first issuance under CAF’s updated 2025 Sustainable Finance Framework, which received a Second Party Opinion from Moody’s with a “SQS2” score and a “High” contribution to sustainability. The bond is aligned with the IFC Blue Finance Guidelines and the Blue Bond Practitioner’s Guide developed by ADB, ICMA, IFC, UNEP FI, and UN Global Compact.

CAF will use the proceeds to finance eligible blue projects, including the development of sustainable water management infrastructure in coastal zones that contribute to the protection of nearby marine ecosystems and enhance adaptation for local communities.

Initial project locations include Brazil, Ecuador, and other countries throughout Latin America and the Caribbean. These operations build on CAF’s record of channelling over USD 1.3 billion since 2022 into marine and coastal initiatives across 16 countries, including support for coral restoration, sargassum management, energy transition in the shrimp sector, and marine sanitation.

UNDP’s Role

UNDP’s role as Technical Advisor marks a major step forward in aligning sustainable finance with the SDGs. The agency will provide comprehensive technical assistance for the pre-issuance and post-issuance of the Blue LAC Bond.

• Pre-issuance advisory: Screening of eligible project pipeline, validation of alignment with SDGs, and confirmation of final project selection.
• Post-issuance advisory: Co-development of the Blue LAC Bond Impact Report, including external review of project allocations, use of proceeds and measurable impact.

This collaboration adds a powerful layer of credibility, ambition, and transparency to the structure and showcases a new model of MDB–UN partnerships to scale sustainable development finance.

Quotes

• “This Blue Bond is a very important step in CAF’s journey to scale climate and nature finance in Latin America and the Caribbean. It reflects our strategic focus on mobilizing private capital for sustainable development and our commitment to strengthening the region’s resilience to climate risks. By anchoring this transaction in our new Sustainable Finance Framework, we are setting a clear precedent for future thematic issuances that deliver both environmental integrity and development impact”, from Gabriel Felpeto, Finance Vice President and CFO, CAF.
• "Aligning capital flows with climate and development goals is key to building resilient and sustainable futures. Blue bonds can mobilize private capital for blue economies, marine conservation, and coastal protection. UNDP collaborates with multilateral banks, sovereigns, and corporates to unlock thematic debt that advances the SDGs and NDCs, while broadening investor participation and ensuring impact transparency. Supporting CAF in this initiative highlights how sustainable finance can accelerate progress toward resilient human development—empowering people and ecosystems to adapt and thrive within planetary boundaries" stated Michelle Muschett, Assistant Secretary General and Regional Director, Regional Bureau for Latin America and the Caribbean, UNDP.
• “BNP Paribas successfully arranged a €100 million blue bond for CAF – development bank of Latin America and the Caribbean – in collaboration with the United Nations Development Programme (UNDP) as a technical advisor. The bond aims to finance coastal ecosystems protection and adaptation measures for local communities notably in Brazil and Ecuador. It has been fully subscribed by BNP Paribas Cardif.”, from Laurent Leveque, Global Head Official Institutions Coverage, BNP Paribas.

Terms of Transaction