CAF launches its Children and Youth Bond Programme for up to US$ 1 billion

CAF— development bank of Latin America and the Caribbean - today announced the launch of its Children and Youth Bond Programme, a financing platform of up to USD 1 billion aimed at mobilizing capital for social projects focused on children, adolescents and young people across the region. The announcement was made during CAF’s International Economic Forum in Panama.

The Children and Youth Bond Programme is a core capital markets pillar of CAF LAC Future Bank, CAF’s long-term initiative to place children and youth at the center of development financing. CAF's LAC Future Bank initiative was presented jointly with UNICEF in September 2025, during the 80th session of the United Nations General Assembly, with the goal of mobilizing US$ 5 billion by 2031 to reach 50 million children and young people in Latin America and the Caribbean.

The launch of the program follows its immediate and successful execution in the capital markets, through two transactions: a USD 61.6 million private placement, and a CHF 125 million public issuance in the Swiss market, announced and priced prior to the event.

Both transactions were structured under a common impact, governance and reporting framework, demonstrating CAF’s ability to operationalize innovative social finance instruments at scale in international markets.

The Swiss franc transaction represents the first digital social bond issued in the Swiss market and CAF’s first digital bond issuance, marking a significant milestone in the application of digital issuance formats to socially focused instruments in international capital markets.

Projects eligible under the Children and Youth Bond Programme adopt a methodological approach centered on individuals aged 0 to 24, based on UNICEF’s Child-Lens Investing Framework (CLIF).  CAF thus becomes the first multilateral development bank to apply CLIF within a bond program in international capital markets.

The framework strengthens project selection, impact measurement and accountability, and is grounded in evidence showing that every dollar invested in early childhood can generate returns of between 4 and 16 dollars, making investment in children and youth among the most cost-effective for long-term development.

The program responds to a critical regional challenge: 115 million children and young people in Latin America and the Caribbean are at risk due to poverty, inequality and violence, while 60% of child-focused Sustainable Development Goals are currently off track.

“The launch of this program, together with the successful execution of its first transactions, reflects strong investor confidence in CAF’s financial strength and in our ability to innovate with impact,” said Gabriel Felpeto, CAF’s Vice President of Finance. “By combining a robust social framework with a digital issuance format, we are demonstrating that innovative structures can be delivered with rigor, credibility and scalability, while meeting investor demand for high-quality credit aligned with measurable social outcomes.”

The USD 61.6 million private placement was arranged with Crédit Agricole CIB acting as Sole Bookrunner and Sole Sustainable Structurer, and was subscribed by long-term institutional investors including T. Rowe Price, Nuveen and L&G (Legal & General), reflecting sustained demand for high-quality credit instruments aligned with clear social objectives.

The CHF 125 million Swiss franc public issuance, with a 7-year maturity, was placed in the Swiss market and led by UBS and Zürcher Kantonalbank (ZKB) as Joint Lead Managers, attracting strong demand from institutional investors seeking exposure to social bonds, combining financial discipline, international standards and measurable impact.

“This initiative demonstrates once again that international collaboration in financial innovation allows us to close investment gaps and direct resources more efficiently toward the most vulnerable populations,” highlighted Kitty van der Heijden, UNICEF’s Deputy Executive Director. “UNICEF’s technical support for the application of Child-Lens Investing criteria in CAF’s LAC Future Bank initiative is a concrete result of the cooperation between both institutions, aimed at putting children and youth at the center of investment.”

Proceeds from the Children and Youth Bond Programme will finance projects that improve access to essential health and education services, including health and education infrastructure, teacher training, scholarships, primary healthcare, and early childhood care.

During the forum, Christian Asinelli, CAF’s Corporate Vice President for Strategic Programming, called on all institutions that share the vision of Banco Futuro to formally join the Global Alliance for New Generations, led by CAF and UNICEF.

UNICEF's collaboration with CAF is limited to the implementation of CLIF criteria in the partner's internal investment process and does not act as an investment advisor, nor has it had or will have any role in the design, structuring, development, management, or operation of any fund or investment managed by CAF or its subsidiaries.