Investor demand exceeded US$1 billion due to confidence in the financial soundness of CAF and the efficiency of its management for 50 years

CAF places USD 750 million in bonds to promote the reactivation of Latin America

photo_camera American dollars

Investor demand exceeded US$1 billion due to confidence in the financial soundness of CAF and the efficiency of its management for 50 years to promote the implementation of programs and projects that improve the welfare of the population and economic growth in the region when it is most needed.
CAF, the Latin American development bank, continues to attract resources to support the region with a new bond placement for US$750 million. This benchmark issue has a maturity of 5 years and has closed with a coupon of 1.625%. The amount of the placement rose from 500 to 750 million due to the interest of investors who have demanded USD 1,050 million.

"We are an unconditional ally of Latin America and we continue working so that the countries have access to resources with favorable rates to implement the plans of social and economic reactivation that allow to improve the well-being of the population. The support of investors with this new issue strengthens us to promote sustainable development and regional integration at a time when the region needs it most," said Luis Carranza Ugarte, CEO of CAF.

This issue in the U.S. market had a total of 93 investors mainly from fund managers, public institutions, pension funds and commercial banks. The placement banks were Citi, Daiwa, Goldman Sachs and Nomura.

CAF supports the region in an agile and timely manner through a series of financial and technical instruments that complement the measures being implemented by governments. The comprehensive strategy includes a regional emergency credit line of US$2.5 billion to reinforce counter-cyclical economic measures. Small and medium-sized enterprises, and the private sector in general, will also be able to benefit from the liquidity being provided to local development banks and commercial banks to promote economic recovery in Latin America, among other facilities.

For more than two decades, the Latin American development bank has been pursuing a strategy of diversifying its sources of financing through a continued presence in the global capital markets, which has placed it in a privileged position internationally. The multilateral promotes sustainable development and regional integration through the efficient mobilization of resources for the timely provision of multiple, high value-added financial services to public and private sector clients in shareholder countries.


 

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