The issue is also the one that obtained the greatest demand in the 30 years of history of the CAF (former Andean Development Corporation) in the capital markets, with a total amount of almost 6.6 billion euros.
Last January, the credit organization issued bonds for US$6.35 billion in the US market.
The CAF highlighted that this record financing was carried out “in the middle of a international market marked by high volatility in the face of a challenging geopolitical context” and that the results obtained are evidence of the “investor confidence.”
The bonus, as indicated, will be used for “Boost green financing and sustainable and inclusive growth in Latin America and the Caribbean” and is part of a “diversification strategy” of its financing sources “through an uninterrupted presence in global capital markets.”
Which countries participated in the issuance of the CAF
180 investors from 24 countries participated in the issue, with 80% of them located in Europe and the remainder in the Middle East, the Americas and Asia.
Bank administrators represented 35% of the placement, followed by banks with 28%, central banks and public institutions representing 22%, and pension and insurance funds with a participation of 15%, the CAF said.
The The placement banks of the bond were BBVA, BNP Paribas, Credit Agricole CIB and Morgan Stanley.
“In less than 40 days of the year we have achieved a demand of more than US$12,000 million, and we have placed approximately US$3,500 million, which shows the interest of investors throughout the world. for a better future for Latin America and the Caribbean through CAF,” said executive president, Sergio Díaz-Granados.
After which, he stated that the placement will allow the CAF to be consolidated “as the green bank and sustainable and inclusive growth with various initiatives that improve the quality of life of the population”.
The credit institution also stressed the confidence reflected in the risk ratings.
He detailed, in this sense, that Japan Credit Ratings Agency (JCR) today maintained a long-term rating of AA+ with a stable outlook for its bonds.
Similarly, the Fitch agency gave it a long-term rating of AA- with a stable outlook, Moody’s gave it a note of Aa3, while S&P Global raised the rating from AA- to AA last year.
These notes according to the CAF- are the “highest ratings” it had in its history.
The organization announced last December during the 28th United Nations Conference on Climate Change (COP28) that it will invest US$15 billion until 2030 for the “adaptation and risk management of natural disasters” in Latin America caused by climate.
Source: Ambito
