CAF issues USD 382 million green bond in the Swiss market

This is the first green bond issued by CAF in 2022 and its second green issue on the Swiss market


CAF, development bank of Latin America, issued its first green bond in 2022 in the Swiss market, for CHF 350 million (USD 382 million), aimed at financing clean mass transportation projects, renewable energy, biodiversity protection, among other initiatives that contribute to climate change adaptation and mitigation. 

The bond has been placed by Credit Suisse and Deutsche Bank, has a maturity of 5 years and a coupon of 0.45%. In addition, it is the first CAF transaction to be hedged to Term SOFR, in accordance with the Institution's plan to substitute the Libor rate. 

"This bond placement in the Swiss market is a demonstration of CAF's ability to attract new international resources at favourable rates to address the main challenge facing the region and the planet: climate change. These resources are part of our intention to become the green bank of Latin America," said Sergio Díaz-Granados, CAF's executive president. 

The endorsement received by CAF following its equity strengthening in 2021, as well as the recent change in outlook to positive by Fitch, helped to underpin the deal and increase demand for the issue. These funds reflect CAF's work to mobilise international resources to address key development issues in Latin America and the Caribbean