CAF carries out the largest bond issue in its history for US$1.5 billion

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CAF carries out the largest bond issue in its history for US$1.5 billion

The Development Bank of Latin America (CAF), concluded its first debt issuance in 2023 in the US market, which resulted in the largest placement in its history, through a benchmark size bond for US$1.5 billion maturing in January of 2026 and a coupon of 4.75%. This issuance achieved the highest demand in CAF’s history with approximately 90 investors registered in the order book for an amount close to US$2.4 billion.

CAF took advantage of the interest of investors in view of the recent rating increase made by Fitch Rating from A+ to AA-, and carried out this new issuance increasing the diversification of the investor base, including fund managers, central banks, institutional investors, among others. , from Europe, the United States, the Middle East and Asia. The placing banks were Bank of America, Citigroup, Deutsche Bank and Goldman Sachs.

"What better way to start 2023 than with the highest placement and demand in CAF’s history. Everything lined up perfectly for this transaction with our recent Fitch Ratings credit rating upgrade last week (from A+ to AA-) and the positive market tone we have seen at the start of the year. This solid result shows the confidence of our investors and how they have seen CAF’s recent progress, including new members and a historic capital increase"stated Gabriel Felpeto, CAF’s Vice President of Finance.

Currently, CAF registers the best credit rating level in its history with the rating agencies Fitch, S&P Global, Moody’s and JCR. In 2022, the raising of long-term resources registered an amount close to USD 4,000 million in 30 bond issues in 9 different currencies, with a greater presence in the US and European markets.

CAF has been carrying out, for more than three decades, a strategy of diversifying its financing sources, through an uninterrupted presence in the global capital markets, which have placed it in a privileged position internationally. The multilateral promotes sustainable development and regional integration, through an efficient mobilization of resources for the timely provision of multiple financial services, with high added value, to clients of the public and private sectors of the shareholder countries.

CAF -development bank of Latin America- has the mission of promoting sustainable development and regional integration, through the financing of projects in the public and private sectors, the provision of technical cooperation and other specialized services. Established in 1970 and currently made up of 20 countries -18 from Latin America and the Caribbean, along with Spain and Portugal- and 13 private banks, it is one of the main sources of multilateral financing and an important generator of knowledge for the region.

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