CAF releases $ 650 million dollars to recover Latin America

The Development Bank of Latin America (CAF) has issued a five-year term bond for an amount of $ 650 million and a coupon of 2.25 %. The resources obtained by the organization will be used to support the economic and social reactivation of Latin America and the Caribbean. “We appreciate the confidence and interest of investors in CAF bonds to promote the economic and social reactivation of Latin America and the Caribbean,” said CAF Executive President Sergio Díaz-Granados.

Díaz-Granados explained that the resources raised come from international markets at competitive rates, which will allow promoting “the sustainable development of the region through the financing of strategic projects, the provision of technical cooperation and knowledge products.”

CAF applies different sources of financing

Likewise, the entity has highlighted that for more than three decades it has carried out a strategy of diversifying its sources of financing, through an uninterrupted presence in global capital markets, which has placed it in a “privileged position internationally.” This status, according to CAF, has allowed the multilateral bank to carry out the issue “in the midst of a volatile market due to the expectation of rising international interest rates.”

Fund managers, central banks, commercial banks and public institutions have led the placement orders. The agents in charge of the transaction have been BNP Paribas, Goldman Sachs, Morgan Stanley and Nomura.

Source: dpa