The Central American Bank for Economic Integration (CABEI) successfully placed a global bond due 2026 for an amount of US$1.25 billion under its Social Bond Framework.
The transaction is the largest in its history and represents its third benchmark issuance since it obtained its “AA” rating in 2019, confirming its commitment to access this market on a recurring basis.
BofA Securities, BNP PARIBAS, Crédit Agricole CIB and HSBC were the placement banks. The social issuance was placed following a demand underwritten for approximately US$2.55 billion (five times the minimum target of US$500 million), with the participation of institutional investors from high-quality accounts during the two days of book construction. The placement represents issuance number 130 under CABEI’s Medium-Term Notes Program (MTN) and its fourth consecutive issuance with some type of Environmental, Social or Governance (ESG) label so far this year, consolidating its position as the most important multilateral development bank in the region.
The executive president of CABEI, Dr. Dante Mossi, views the Bank’s strong start in 2023 with optimism, highlighting the institution’s commitment to projects with ESG components, saying that “since its first ESG issuance in 2019, CABEI has captured more than US$3.9 billion under its Social, Green and Blue Bond Frameworks to finance robust and measurable programs and projects with high development impact.”
The bid book registered more than 130 different accounts from 33 countries, and its allocation was predominantly in Central Banks and Agencies (67%), followed by Asset Managers (12%), Pension Funds (7%), and Insurance Companies. Insurance (2%).
In this regard, Mossi pointed out that “the distribution by type of investor demonstrates the value of the CABEI franchise and recognizes its track record as a global issuer that grants resources under stable and competitive financial conditions to its member countries.”
The Social Bond will be listed on the Luxembourg Stock Exchange. CABEI also hopes to make its debut on the London Stock Exchange, after gaining recognition as a “public international body” by the United Kingdom’s Financial Conduct Authority (FCA), being a pioneer in legal processes, paving the way for other entities can obtain this recognition.