CABEI Launches Record $1.5 Billion Sustainable Global Bond with Strong Market Demand

CABEI Successfully Issues Historic $1.5 Billion Sustainable Global Bond

In a landmark achievement for regional finance, the Central American Bank for Economic Integration (CABEI) has announced the successful pricing of its largest bond issuance to date, a Sustainable Global Bond amounting to US$1.5 billion. This significant issuance, which boasts a three-year maturity with a fixed coupon of 4.75%, underscores CABEI’s status as the highest-rated issuer in Latin America, holding an impressive AA/Aa3 rating from S&P and Moody's.

A Strong Response from the Market

The issuance has generated a remarkable level of interest, with an order book surpassing US$4 billion—2.7 times the amount issued. This overwhelming demand reflects the attractiveness of sustainable, high-quality financial instruments among a diverse group of over 110 global investors. Notably, the allocations were primarily targeted at Central Banks and Official Institutions (65%), followed closely by Asset Managers, Insurers, and Pension Funds (22%), while Banks and Treasuries received 10% of the issuance. This distribution underscores the impressive market confidence in CABEI’s financial solidity and its robust sustainable finance initiatives.

CABEI’s Commitment to Sustainable Finance

The issuance is not just a financial transaction; it symbolizes CABEI's commitment to sustainable development. With the Sustainable label attached to the bond, it reinforces the institution's leadership in the Environmental, Social, and Governance (ESG) space. To date, CABEI has successfully issued over US$6.9 billion in sustainable bonds, representing more than 58% of its total funding since its entry into the ESG capital markets in 2019. The funds raised through this bond will be allocated to finance or refinance eligible social, green, and blue projects as outlined in CABEI's Sustainable Bond Framework. This aligns with the organization’s mission to promote substantial and sustainable development across Central America through impactful projects.

CABEI's Executive President, Gisela Sánchez, expressed her pride in this historic global issuance, emphasizing its significance in solidifying the bank as a leader in sustainable finance dedicated to the region's long-term development. President Sánchez also acknowledged the crucial role that member countries and investors play in enhancing CABEI’s market credibility and franchise value.

Reaffirming Financial Strength and Strategy

This issuance comes at a time when CABEI is rejuvenating its financial strategy, focusing on prudent balance sheet management and adopting stringent technical standards. The successful bond issuance reinforces the confidence investors have in CABEI’s financial resilience under this renewed approach, which prioritizes cost optimization and operational efficiency alongside the integration of ESG principles.

Leading the issuance process is the law firm Gibson, Dunn & Crutcher LLP, further ensuring that CABEI adheres to compliance and regulatory standards. It is important to note that this bond offering is primarily available to qualified institutional buyers under Rule 144A of the Securities Act, emphasizing its exclusivity to certain investors.

Conclusion

As CABEI moves forward with this record-setting global benchmark bond, it has not only broadened its financial capabilities but also reinforced its dedication to sustainable practices in economic development. This issuance stands as a testament to the emerging trend of sustainable finance in Central America, paving the way for more significant investments in projects that promote environmental and social well-being across the region. Through initiatives such as these, CABEI continues to foster meaningful economic growth while championing sustainability—a model that other institutions may well look to emulate in the future.