The Development Bank of Latin America, the former Andean Development Corporation, achieved the highest demand in the capital markets in 30 years, for an amount greater than US$3.4 billion.
The Development Bank of Latin America and the Caribbean (CAF) achieved the largest placement in its history, through a bond for US$1,750 million with a term of 3 and a half years and a coupon of 6%. This issue also achieved the highest demand in the 30 years of history of the international credit organization CAF in the capital markets, for an amount greater than US$3.4 billion.
The placement banks were Bank of America Securities, Daiwa Capital Markets, Goldman Sachs International and HSBC and, in the midst of an international market marked by high volatility due to economic and geopolitical uncertainty, the issue had the participation of approximately 120 investors, including fund managers, central banks and institutional investors from the United States, Europe, the Middle East, Asia and Africa.
Sergio Díaz-Granados, executive president of CAF, stated that the organization continues to “exceed our expectations with a new record issuance of bonds, both in amount and by demand, which shows the confidence of investors in the management we have been carrying out to be the green bank and sustainable and inclusive growth in Latin America and the Caribbean.”
Good news for the region
And he added that This is also good news for the region because it will allow them to finance with favorable conditions the projects and initiatives that are required to improve the quality of life of the population and promote competitiveness.
The agency reported that it currently registers the best credit rating level in its history with the rating agencies Fitch, S&P Global, Moody’s and JCR. So far in 2023, the raising of long-term resources reaches US$6.25 billion in more than 40 bond issues in 15 different currencies, with a greater presence in the US and European markets.
Likewise, they indicated that For more than three decades, CAF has been carrying out a strategy to diversify its financing sources. through an uninterrupted presence in global capital markets, which has placed it in a privileged position internationally.
Source: Ambito
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