CAF—Development Bank of Latin America—has solidified its position in the international financial market by successfully issuing a 5-year bond for a substantial €1 billion. This landmark achievement not only underscores CAF’s robust financial strategy but also highlights strong global investor confidence in the Latin American region. With a coupon rate of 4.50%, the bond attracted unprecedented demand, reaching a record €2.3 billion order book from 107 investors across 22 countries. This remarkable interest emphasizes the appeal of CAF bonds and the perceived stability of investments linked to Latin American development. For context, 1 Billion Euro To Usd conversion reflects a significant capital influx, currently equating to over $1 billion US dollars, showcasing the substantial scale of this financial operation in US currency terms.
CAF’s success in this issuance is rooted in a long-term diversification strategy pursued for over three decades. This consistent approach to international capital markets has earned CAF exceptional credit ratings from leading agencies like Fitch, S&P Global, Moody’s, and JCR. Gabriel Felpeto, CAF’s Vice President of Finance, noted that this issuance completes approximately 50% of their 2023 financing plan within the first few months of the year. He further emphasized the delight in continued European investor support, a key market for CAF. The record-breaking order book, as Mr. Felpeto stated, “ratifies the institution as a benchmark issuer in Latin America and validates our work in supporting the development of our region.”
The demand for this €1 billion bond was driven by a diverse group of institutional investors, including pension fund managers, central banks, commercial banks, and public institutions. Prominent managing institutions such as BNP Paribas, JP Morgan, Barclays, and Credit Agricole played crucial roles in the bond’s success. This strong participation from reputable financial entities further confirms the robust demand for CAF bonds within the international capital market. Ultimately, CAF continues to be a pivotal channel for funds aimed at promoting sustainable development and regional integration in Latin America. By financing projects that foster social inclusion, enhance productivity, develop infrastructure, and support regional integration, CAF plays a vital role in the economic advancement of its member countries. The successful €1 billion bond issue, equivalent to a significant sum in USD, reinforces CAF’s mission and its appeal to global investors seeking impactful and stable investment opportunities in a growing region.
