CAF – Development Bank of Latin America and the Caribbean – has successfully placed its first Sustainable Bond worth €1.5 billion ($1.75 billion), in what it described as the largest order book in its history. The seven-year issuance marks the institution’s third major milestone in sustainable finance this year, following the release of its Sustainable Finance Framework in February and its inaugural Blue Bond in June.
Investor demand was exceptionally strong, with orders exceeding €14.9 billion – nearly 15 times the initial size – prompting CAF to upsize the deal from €1 billion to €1.5 billion, equalling its largest-ever euro placement. The bond carries an annual coupon of 3.125% and was jointly managed by BBVA, BNP Paribas, Crédit Agricole CIB, Deutsche Bank and Santander. It is CAF’s fourth benchmark bond issue in 2025.
“This historic issuance reinforces international investors’ confidence in CAF and its strategy to become the Green Bank of Inclusive Growth for Latin America and the Caribbean,” said Sergio Díaz-Granados, CAF’s executive president. “The resources raised will allow us to expand competitive financing for our member countries, accelerating the green transition, social inclusion, and sustainable development in the region.”
The majority of the bond was allocated to European investors (71%), followed by Asia-Pacific (26%) and the Middle East (3%). By investor type, asset managers accounted for 41% of allocations, central banks and official institutions 39%, banks and private banking 13%, and insurers and pension funds 7%.
CAF is rated Aa3 (Positive) by Moody’s, AA (Stable) by S&P, and AA- (Stable) by Fitch. The bank said the issuance underlined its commitment to delivering innovative financing to advance sustainability, climate resilience and inclusive growth across the region.
