Development Bank of Latin America Raises EUR 1.25Bi for Regional Economic Stimulus

 

The Development Bank of Latin America (CAF), which includes Brazil and Portugal, has raised 1.25 billion euros to finance projects in countries hit by the coronavirus pandemic.

According to the bank, the funds, to support economic reactivation, were raised in its largest bond issue ever, with a term of 5 years and a coupon rate of 0.25%, with a demand of close to 2 billion euros.

The multilateral bank said it had received demand from more than 140 investors, mainly from fund managers, commercial banks, insurers and central banks for the bond issue, which was underwritten by Barclays, BBVA, Goldman Sachs and JPMorgan.

“Achieving the highest amount and the lowest coupon in euros in such a challenging context for the region gives us a more competitive margin of action to continue being an unconditional ally when it is most needed,” CAF’s executive president, Luis Carranza, said in a statement.

CAF, which is backed by 17 countries from Latin America and the Caribbean, as well as Spain, Portugal and 14 private banks, last year approved a record of more than $14.1 billion to its members, including an emergency credit line of $4.1 billion to bolster economic measures to tackle the covid-19 pandemic.

 

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