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CAF- Development Bank of Latin America and the Caribbean, first issued a sustainable bonus for 1.5 billion euros to seven years, a debt instrument to specifically finance projects with environmental or social benefits throughout Latin America and the Caribbean. “This historical broadcast reinforces the confidence of international investors in CAF and in its strategy to become the Green Bank and inclusive growth in Latin America and the Caribbean,” said Sergio Díaz-Granados, executive president of CAF.
The way in which these bonds work is that the organization that issues them – in this case CAF – receives money from investors who, in return, obtain financial performance. In that order of ideas, investors interested in providing their resources through this mechanism, the bank said, together offered 14.9 billion euros in total for the bond and its allocation was mainly distributed among European investments (71%), of Asia and Pacific (26%) and a half East (3%). By type of investor, asset managers represented 41%, central banks and official institutions 39%, banks and private banking 13%, and insurers and pension funds 7%.
“The resources obtained will allow us to expand competitive financing for our member countries, accelerating the green transition, social inclusion and sustainable development in the region,” added Díaz-Granados, which has insisted on several occasions that the path that the region takes is that of sustainability.
In fact, throughout this year CAF has also exceeded two other milestones in sustainable finance. In February he published the sustainable finance framework and in June he issued the first blue bonus, a similar tool, but aimed at projects that promote the conservation of oceans and marine ecosystems. For that case, the bonus was issued per 100 million euros and CAF joined with the United Nations Development Program (UNDP), which acted as a technical advisor.
In the way to promote the region as a capable of growing according to the Sustainable Development Goals (SDGs), during 2025 the bank also approved 5.2 billion dollars in credits for 16 operations in 10 countries in the region destined for issues such as climate action and energy transition, and notified the approval of 1,445 million dollars to finance strategic projects in Argentina, Brazil, Chile, Chile, El Salvador and Honduras.
In addition, according to CAF, the recent transaction was supported by BBVA, BNP Paribas, Credit Agricole Cib, Deutsche Bank and Santander.
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