CAF – Development Bank of Latin America and the Caribbean – has issued its first-ever Blue Bond, raising €100 million ($116 million) to finance sustainable and climate-resilient coastal development across the region. The 5-year bond, due in June 2030, carries a 2.975% annual coupon and was fully subscribed by BNP Paribas Cardif.
Structured and arranged solely by BNP Paribas, the transaction was launched in collaboration with the United Nations Development Programme (UNDP), which served as Technical Advisor. The issuance marks a major step in aligning capital flows with the Sustainable Development Goals (SDGs), particularly those linked to ocean conservation and community adaptation.
The Blue LAC Bond is the first to be issued under CAF’s updated 2025 Sustainable Finance Framework, which received a “High” sustainability contribution score (SQS2) from Moody’s. It is also aligned with established guidelines, including the IFC Blue Finance Guidelines and the Blue Bond Practitioner’s Guide developed by global partners such as ADB, ICMA, IFC, UNEP FI, and the UN Global Compact.
Proceeds from the bond will be directed towards eligible blue economy projects, including sustainable water infrastructure in coastal areas, protection of marine ecosystems, and climate adaptation initiatives in vulnerable communities. Early investments are expected in Brazil, Ecuador, and other nations throughout Latin America and the Caribbean.
This announcement comes alongside CAF’s participation at the United Nations Ocean Conference (UNOC) and the Blue Economy and Finance Forum (BEFF) in Monaco, where the bank reiterated its pledge to double blue economy investments to USD [*] billion by 2030, up from its initial commitment at the Lisbon Ocean Conference in 2022.
UNDP’s advisory role spans both pre- and post-issuance activities — including project pipeline screening, SDG alignment validation, and co-development of an impact report with external reviews of fund allocation and impact metrics. The partnership underscores a growing model of collaboration between multilateral development banks and UN institutions to strengthen sustainable finance frameworks.
Sergio Díaz-Granados, Executive President of CAF, described the bond as “an essential step” in meeting the bank’s commitment to allocate at least USD 1.25 billion for marine and coastal projects between 2022 and 2026. He added that it sets the tone for “CAF’s next chapter in sustainable finance.”
UNDP’s Michelle Muschett highlighted the potential of blue bonds to “mobilise private capital for marine conservation and coastal protection,” while BNP Paribas’ Laurent Leveque said the deal reflects a shared commitment to “safeguarding the complex ecosystems that underpin economic stability and livelihoods” in the region.
