#Honduras #Sustainable Financing #Tegucigalpa #CABEI #Social Bond

CABEI Sets New Benchmark with $2 Billion Social Bond

The Central American Bank for Economic Integration (CABEI) has made history by pricing a colossal $2 billion Global Social Benchmark Bond. This issuance marks CABEI's most significant operation ever and demonstrates its commitment to sustainable development across Central America.

A Historic Step Forward

On January 16, 2026, CABEI revealed that this socially responsible bond has a three-year maturity and a fixed coupon rate of 3.75%. The issuance was structured under the 144A Reg S format, highlighting its strategic placement within global markets, as well as fostering CABEI’s image as a recurrent issuer with the ability to attract substantial investments.

This bold move not only consolidates CABEI's return to the global benchmark market but also illustrates a sustained trend of increasing benchmarks that CABEI has been executing successfully. Such endeavors are essential as they enhance CABEI’s financial standing and signify improvement in its credit profile.

In just under a year, CABEI received upgrades to its credit ratings, climbing to “AA+” with S&P Global Ratings and Japan Credit Rating Agency (JCR), confirming its stable trajectory after six years of maintaining previous ratings. The bond's successful pricing, aided by a solid order book exceeding $9.3 billion—equivalent to 4.7 times the issuing amount—underlines investor confidence and demand for high-quality issuers.

Commitment to Sustainable Development

The proceeds from this landmark issuance are specifically allocated to finance eligible social and environmental projects that align with CABEI's Sustainable Bond Framework. Priority sectors for these funds include education, health, social development, and connectivity, aiming to contribute directly to the economic, social, and environmental upliftment of the member countries.

CABEI’s Executive President, Gisela Sánchez, expressed pride in this achievement, stating, “Our successful return to the global benchmark market confirms the recent optimization of our credit profile and strengthens our position as a global reference issuer.” Her remarks underscore the Bank's assertive Financial Strategy, emphasizing a shared benefit of reducing funding costs for member countries through lower interest rates.

Moreover, CABEI is proud to emerge as the most experienced issuer of ESG (Environmental, Social, Governance) debt from Latin America, leading in the placement of social and sustainable bonds. This issuance stands as the largest ever executed by a Multilateral Development Bank (MDB) in Latin America, further amplifying CABEI's commitment to impactful investment.

Investor Engagement and Response

More than 130 investors across five continents participated in this transaction, which included Central Banks and tier-one asset managers. This global support not only reflects confidence in CABEI's financial management practices but also emphasizes the strategic and conservative approach CABEI adopts towards overall financial operations.

The financing from this bond issuance will not merely facilitate projects but will strive to deliver measurable social impact in the regions supported by CABEI. As the demand for responsible investing continues to grow, CABEI’s successful navigation through this issuance sets a benchmark not just for itself, but for other institutions venturing into the social bond territory.

As CABEI continues to demonstrate operational excellence and rigorous technical standards, the focus on fostering long-term, sustainable development across Central America remains firm. The $2 billion Global Social Bond seizes this vision, nurturing future growth while appealing to a diverse investor base eager to contribute to meaningful social change.

For further inquiries or investment opportunities, CABEI is represented by Gibson, Dunn & Crutcher LLP.

This record issuance not only marks a significant milestone for CABEI but also paves the way for more impactful financing solutions that address pressing social and environmental challenges faced by the region.