CAF makes the largest bond issue in its history for 1.5 billion dollars

CAF -development bank of Latin America- 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 USD 1.5 billion maturing in January 2026 and a coupon of 4.75%. This issue achieved the highest demand in CAF's history with approximately 90 investors registered in the order book for an amount close to USD 2.4 billion. 

CAF took advantage of investor interest following the recent rating upgrade by Fitch Rating from A+ to AA-, and made this new issue 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 underwriters were Bank of America, Citigroup, Deutsche Bank and Goldman Sachs. 

"What better way to start 2023 than with the largest placement and demand in CAF's history. Everything aligned perfectly for this transaction with our recent credit rating upgrade from Fitch Ratings last week (from A+ to AA-) and the positive market tone we have seen at the start of the year. This strong performance is evidence of our investors' confidence and how they have viewed CAF's recent progress, including new members and a historic capital increase," said Gabriel Felpeto, CAF's Vice President of Finance. 

CAF currently has the best credit rating in its history with Fitch, S&P Global, Moody's and JCR. In 2022, long-term fundraising registered an amount close to 4 billion dollars in 30 bond issues in 9 different currencies, with a greater presence in the US and European markets. 

For more than three decades, CAF 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.