The Diplomat
CAF, the development bank of Latin America, has successfully issued a 1.25 billion euro five-year bond issue with a coupon of 0.25% to support economic reactivation in the region, according to a press release issued by the entity.
The issue represents the largest transaction in euros that CAF has carried out in the capital markets in 50 years.
The underwriters were Barclays, BBVA, Goldman Sachs and J.P. Morgan, and demand, according to the press release, exceeded 140 investors, mainly fund managers, commercial banks, insurance companies and central banks.
Demand reached nearly 2 billion euros, which made it possible to increase the initial allocation and reduce interest rates in order to offer more efficient financing to shareholder countries.
CAF’s executive president, Luis Carranza, stated that “financial soundness and commitment to promoting the well-being of the population and sustainable development have been recognized by investors who have trusted in our role as a catalyst to support the reactivation of Latin America”.
The multilateral institution closed 2020 with record approvals of more than 11.624 billion euros, including an emergency regional credit line of more than 3.3 billion euros to reinforce counter-cyclical economic measures to address the pandemic.
