CAF—development bank of Latin America—has successfully issued a 5-year bond for EUR 1.0 billion, boasting a 4.50% coupon. This landmark issue marks the highest euro demand in CAF’s history, attracting 107 investors from 22 countries with orders nearing EUR 2.3 billion. This significant interest underscores the strong confidence in CAF and its mission, particularly when considering the substantial value of 1 billion euro to usd.
For over three decades, CAF has strategically diversified its funding sources, maintaining a consistent presence in international capital markets. This approach has solidified its strong global position and earned it top-tier credit ratings from agencies like Fitch, S&P Global, Moody’s, and JCR. The ability to attract such a high level of investment, especially for a bond valued at 1 billion euro, highlights CAF’s credibility and appeal in the international financial landscape. Investors recognize the stability and potential returns associated with CAF bonds, making conversions like 1 billion euro to usd a relevant factor in their portfolio considerations.
Gabriel Felpeto, CAF’s Vice President of Finance, stated, “With this issue, we have achieved approximately 50% of our 2023 financing plan within the first few months of the year. We are delighted by the continued support from European investors, a key market for CAF. The record-breaking order book for this operation reaffirms CAF’s position as a leading issuer in Latin America and validates our efforts to support regional development.” The successful placement of a 1 billion euro bond further empowers CAF to channel significant funds into Latin America, driving projects that require substantial capital, often considered in terms of major global currencies like the US dollar equivalent of 1 billion euro.
CAF remains committed to directing funds towards sustainable development and regional integration in Latin America. It provides crucial financial services to both public and private sector clients within its member countries. These services facilitate projects aimed at fostering social inclusion, enhancing productivity and economic competitiveness, developing vital infrastructure, and promoting regional integration. The demand for CAF bonds, evidenced by this 1 billion euro issue, reflects the international investor community’s recognition of the development bank’s impactful role.
Leading institutions including pension fund managers, central banks, commercial banks, and public entities spearheaded the orders for this bond. The managing institutions for this issuance were BNP Paribas, JP Morgan, Barclays, and Credit Agricole. This successful 1 billion euro bond offering reinforces the robust demand for CAF bonds within the international capital market, demonstrating investor appetite for fixed-income assets issued by strong, mission-driven organizations.
