1 Billion Euro to USD: CAF’s Record-Breaking Bond Issue

CAF (Development Bank of Latin America) recently issued a 5-year euro-denominated bond for a total of 1 billion euros, carrying a 4.50% coupon. This translates to approximately 1.09 billion USD based on current exchange rates. The demand for this bond was unprecedented, exceeding 2.3 billion euros, demonstrating significant investor confidence in CAF and the Latin American market. This record-breaking demand, with 107 investors from 22 countries participating, underscores CAF’s strong reputation in the global financial market.

CAF has consistently diversified its funding sources for over three decades through active participation in international capital markets. This strategy has earned the institution top credit ratings from agencies like Fitch, S&P Global, Moody’s, and JCR. This financial stability allows CAF to effectively support development initiatives in Latin America.

This successful bond issuance enables CAF to achieve approximately 50% of its planned 2023 financing in the first few months of the year. The overwhelming support from European investors, a key market for CAF, reinforces the institution’s position as a leading issuer in Latin America. The strong demand validates CAF’s commitment to promoting sustainable development and regional integration in the region.

CAF leverages its financial resources to drive sustainable development and regional integration by providing a wide range of financial services to public and private sector clients in its member countries. Funding projects focused on social inclusion, economic sector productivity and competitiveness, infrastructure development, and regional integration are central to CAF’s mission. These initiatives aim to improve the quality of life and foster economic growth across Latin America.

Pension fund managers, central banks, commercial banks, and various public institutions were among the key investors in this bond issuance. BNP Paribas, JP Morgan, Barclays, and Credit Agricole managed the issuance, further solidifying the widespread appeal of CAF bonds within the international capital market. This successful bond issuance reflects the global financial community’s confidence in CAF’s mission and its impact on Latin American development.