CAF achieves record bond issuance of 1.25 billion euros to support the reactivation of Latin America

CAF -development bank of Latin America- started the year with the largest transaction in euros and with the lowest coupon in the capital markets in its 50 years, with a bond issue for a total amount of 1.25 billion euros with a term of 5 years and a coupon of 0.25%. Demand from more than 140 investors for close to 2 billion euros allowed the amount to be increased and the interest rate to be reduced to provide more efficient financing to shareholder countries.

"The financial soundness and commitment to promote the well-being of the population and sustainable development have been recognised by investors who have relied on our role as a catalyst to support the reactivation of Latin America. Achieving the highest amount and the lowest coupon in euros in such a challenging context for the region gives us a more competitive margin for action to continue being an unconditional ally when it is most needed," said Luis Carranza Ugarte, CAF's Executive President.

This issue in the London market had more than 140 investors, mainly from fund managers, commercial banks, insurance companies and central banks. The underwriters were Barclays, BBVA, Goldman Sachs and J.P. Morgan.

CAF supports the region in an agile and timely manner through a series of financial and technical instruments that complement the measures being implemented by governments. The multilateral closed 2020 with record approvals of more than $14.1 billion, including a $4.1 billion emergency regional line of credit to reinforce counter-cyclical economic measures to address the pandemic. Small and medium-sized enterprises, and the private sector in general, also benefited from the liquidity provided to local development banks and commercial banks to promote Latin America's economic recovery, among other facilities.

For three decades, the Development Bank of Latin America has pursued a strategy of diversifying its sources of financing through an uninterrupted presence in global capital markets, which has placed it in a privileged position internationally. The multilateral promotes sustainable development and regional integration through the efficient mobilisation of resources for the timely provision of multiple, high value-added financial services to public and private sector clients in shareholder countries.