The bond obtained a demand for US$6.4 billion from investors, the highest in CAF’s history.
He Development Bank of Latin America and the Caribbean (CAF) carries out its first debt issue in 2024, through a bond size benchmark for US$1,750 million with maturity in January 2029 and a coupon of 5%.
It’s about the second issuance of the bank with a record amount of US$1,750 million in the last three months.
Key to external debt: CAF made its first bond issue in 2024 for US$1,750 million
The bond received indications of interest for US$6.4 billionwhich represents an excess demand of 3.6 times by more than 150 investors, making it CAF’s largest to date, under the previous criteria.
The excess demand was attributed to “broad support from investors and the quality of CAF’s credit”. Consequently, it meant a great demand, which was distributed as follows: Central Banks and Official Institutions with 44%; Fund Administrators, Insurers and Pension Funds with 30%; and Bank treasuries representing 24%.
“A very successful issuance in dollars to mark the start of CAF in the capital markets in 2024 achieving the greatest appetite for orders in the bank’s history and a final book of US$6.4 billion. The participation of more than 150 investors is testimony to the strong market interest in credit and CAF’s mandate, to improve the quality of life of Latin Americans and Caribbeans, through sustainable growth and regional integration,” he stated. Gabriel FelpetoVice President of Finance of CAF.
CAF carried out its first bond issue in 2024 and stood out for its geographical diversity
This new issue also stood out for its geographical diversity with the 60% of funds coming from Europe, the Middle East and Africa; 32% from America and 8% from Asia. The placement banks were Barclays Bank PLC, Citigroup Global Markets Limited, JP Morgan Securities PLC and Nomura International PLC.
Source: Ambito
