CAF successfully places bonds to finance counter-cyclical policies in the face of the COVID-19 pandemic in Latin America

CAF - Latin American development bank - concluded a debt issue in the U.S. market, which resulted in the placement of a new bond in the amount of USD 800 million with a 3-year term and a 2.37% coupon on favorable terms. Despite the high volatility environment, this issue achieved a great receptivity with approximately 90 investors registered in the order book with a demand of USD 1.2 billion.

"We are pleased to ratify the growth in investor confidence and interest in CAF bonds to boost the counter-cyclical and social policies that governments are implementing in the face of the COVID-19 pandemic. These resources that we have obtained at favorable rates will be used to partially finance the emergency line of USD 2.5 billion with which we are supporting member countries in a timely manner to protect welfare and employment in the region," said Luis Carranza Ugarte, CAF's Executive President.

This issue is notable for the high volume of individual orders. Among the main investors are also fund managers, official institutions and commercial banks. The placement banks were Barclays, Citi, HSBC 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 comprehensive strategy includes a regional emergency credit line of USD 2.5 billion to reinforce counter-cyclical economic measures. Small and medium-size enterprises, and the private sector in general, will also be able to benefit from liquidity being pumped into local development banks and commercial banks to promote economic recovery in Latin America.

In addition, CAF has made virtual training mechanisms available to countries and is working to generate knowledge, which is fundamental for countries to design their economic recovery strategies while maintaining the social achievements of recent decades. CAF's human talent, together with experts in strategic sectors such as health, education, economics, transport, social protection, technology and governance, work on public policy proposals that can be adapted to the reality of each country, which are available here.