CABEI Breaks Records with $1.5 Billion Sustainable Bond
CABEI Breaks Records with $1.5 Billion Sustainable Bond
The Central American Bank for Economic Integration (CABEI) has announced a significant milestone in its financing history with the pricing of a $1.5 billion Sustainable Global Bond. This bond is the largest issuance that CABEI has achieved to date, showcasing its strength in the capital markets.
Significant Market Demand
The recent issuance, which matures in three years and carries a fixed coupon of 4.75%, highlights CABEI's commitment to sustainability and showcases its robust position in the market. The transaction attracted overwhelming interest, with an order book that surpassed $4 billion. This high demand indicates a healthy investor appetite and reflects the confidence that global investors have in CABEI's financial solidity.
Investor Breakdown
The allocation of the issuance was notably diverse, with around 65% going to Central Banks and official institutions, 22% to asset managers, insurers, and pension funds, and 10% to banks and treasuries. This strategic distribution underscores the confidence placed in CABEI’s initiatives and overall financial strength.
Leadership in Sustainable Financing
CABEI is not only recognized as a leading lender in Central America but is also acknowledged for its commitment to sustainable financing. The Sustainable label of the bond issuance emphasizes its role as a benchmark issuer in ESG (Environmental, Social, and Governance) initiatives.
Impact of the Proceeds
The proceeds from this monumental issuance will finance a range of eligible projects that are environmentally and socially beneficial, aligning with CABEI's Sustainable Bond Framework. To date, CABEI has raised more than $6.9 billion through sustainable bonds, representing a substantial portion of its total funding since its inaugural issuance in the ESG capital markets in 2019.
Vision for Sustainable Development
Gisela Sánchez, CABEI's Executive President, expressed her enthusiasm about this historic issuance, emphasizing its significance in reinforcing the bank's image as a sustainable issuer devoted to regional development. Sánchez also acknowledged the essential role that investors and member countries play in strengthening CABEI's footprint in the capital markets.
Strategic Financial Management
This landmark occurrence marks a pivotal reaffirmation of investors' confidence in CABEI's adjusted financial strategy, which focuses on careful balance sheet management, operational excellence, efficiency improvements, and the integration of ESG principles into its core operations.
Contact Information
The issuance is being managed with the help of legal counsel from Gibson, Dunn & Crutcher LLP, highlighting CABEI's commitment to adhering to regulatory standards while fostering growth.
Frequently Asked Questions
What is the significance of CABEI's $1.5 billion bond?
This bond is CABEI's largest issuance ever, showcasing its financial credibility and commitment to sustainable development.
How will the funds from the bond be used?
Proceeds will finance social, green, and blue projects that align with CABEI's Sustainable Bond Framework.
Who were the main investors in this bond issuance?
Investors included Central Banks, asset managers, insurers, pension funds, and banks from around the world.
What does the Sustainable label signify?
The Sustainable label highlights CABEI’s commitment to sustainability and positions it as a benchmark for ESG initiatives in finance.
Who can I contact for more information regarding CABEI?
Contact Hector Barletta for additional queries related to CABEI and its recent financial activities.
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