CAF places US $ 1 billion in bonds for the economy in Latin America

The Development Bank of Latin America-CAF placed another US $ 1 billion in bonds to continue accompanying the economic and social reactivation plans of its 19 member countries, the agency reported, highlighting that it is the largest investment in the region in recent years. five years.

In a statement, the institution indicated that the issue has a maturity of three years and a coupon of 1.25%, and that it “stands out” in the US market due to the “favorable price level reached for CAF, thanks to the interest of The investors”.

According to the text, among the investors are mainly “fund managers, public institutions, pension funds, central banks, commercial banks with a geographic distribution in Europe, the Middle East, Africa, Asia and America.”

It also reported that the placement banks were Barclays, BNP, Daiwa, JP Morgan.

“Today more than ever, Latin America and the Caribbean needs us and here we are, attracting new resources at favorable rates to continue supporting governments in their care plans, mitigation of the pandemic and in the social and economic reactivation, which we have set as a priority in the first 100 days of management, “said Sergio Díaz-Granados, executive president of CAF, according to the statement.

So far this year, it has issued close to US $ 4.5 billion in various markets, including Europe, Asia and Mexico.

In this sense, the managing director of Barclays, Lee Cumbes, highlighted that the first issuance of a Benchmark-sized CAF in the United States this year “was a complete success.”

“By intelligently using currency diversification with the euro issue at the beginning of the year, the CAF team has created exceptional value for dollar buyers and has managed to exceed its size target with a minimal concession,” added Cumbes.

In addition, he pointed out that “the high quality of demand”, the highest since 2016, confirms the continuous support that CAF receives from investors.

The institution pointed out that it supports the region “in an agile and timely manner” through “a series of financial and technical instruments that complement the measures that the governments are applying.”

The comprehensive strategy includes “fast-disbursing counter-cyclical emergency financing” for US $ 4.1 billion, a regional contingent line of credit for epidemics for US $ 300 million for direct care of public health systems.

It also includes “non-reimbursable technical cooperation” resources for US $ 5 million “for priority initiatives related to responding to the pandemic,” a financial credit line for US $ 1.6 billion for national development banks.

And also “liquidity facilities” to support the health systems and public service companies of the shareholder countries, for an amount of US $ 1.7 billion.