CAF—development bank of Latin America—has successfully issued a 5-year bond totaling EUR 1.0 billion, boasting a 4.50% coupon. This landmark issue marks a historic moment for CAF, achieving its highest ever euro demand with orders nearing EUR 2.3 billion from 107 investors across 22 countries. This significant financial operation underscores strong global investor confidence in CAF and its mission. For context, 1 Billion Euros In Usd translates to over 1 billion U.S. dollars, highlighting the substantial scale of this financial instrument in the global market.
Unprecedented Investor Interest in CAF Eurobond
The overwhelming demand for this euro-denominated bond is a testament to CAF’s robust financial standing and its critical role in Latin American development. The order book for this particular issue swelled to almost EUR 2.3 billion, far exceeding the offered EUR 1.0 billion. This oversubscription demonstrates exceptional investor appetite and solidifies CAF’s position as a leading issuer in international capital markets. The diverse group of 107 investors from 22 nations further emphasizes the broad global appeal of CAF bonds.
CAF’s 30-Year Strategy and Top Credit Ratings
For over three decades, CAF has strategically diversified its funding sources through consistent engagement in international capital markets. This long-term approach has cultivated a strong global presence and earned CAF its best-ever credit ratings from leading agencies including Fitch, S&P Global, Moody’s, and JCR. These ratings are crucial for maintaining investor trust and securing favorable terms for its bond issuances, ultimately benefiting Latin American development projects.
Financing Latin American Growth and Integration
CAF utilizes the funds raised through bond issuances, such as this 1 billion euros in usd equivalent bond, to propel sustainable development and regional integration across Latin America. The development bank channels these resources into high-impact projects within both the public and private sectors of its member countries. These initiatives are designed to foster social inclusion, enhance productivity and competitiveness, develop vital economic and social infrastructure, and strengthen regional connectivity.
Leading Global Institutions Back CAF’s Vision
The investor base for this 1 billion euro bond was led by prominent financial institutions, including pension fund managers, central banks, commercial banks, and public institutions. Notably, the managing institutions for this issuance included BNP Paribas, JP Morgan, Barclays, and Credit Agricole. The participation of these leading global financial players further validates the strong market confidence in CAF and its developmental mandate, reinforcing the appeal of CAF bonds within the international investment community.
