CABEI Issues Historic Sustainable Global Benchmark Bond for US$1.5 Billion

TEGUCIGALPA, Honduras , Jan. 17, 2025 /PRNewswire/ -- The Central American Bank for Economic Integration (CABEI), the highest-rated Latin American issuer with AA/Aa3 ratings by S&P/Moody's, has successfully priced the largest issuance in its history through a US$1.5 billion Sustainable Global Bond with a three-year maturity.

The 144A/Reg S issuance, maturing in 2028 with a fixed coupon of 4.75%, represents the Bank's most relevant transaction in the capital markets and reinforces its position as a regular benchmark issuer in the global market.

The transaction garnered an order book exceeding US$4 billion, 2.7 times the issued amount, driven by the interest of over 110 high-quality global investors seeking sustainable, high-credit-quality instruments. The issuance was primarily allocated to Central Banks/Official Institutions (65%), Asset Managers/Insurers/Pension Funds (22%), and Banks/Treasuries (10%), underscoring the market's confidence in CABEI's financial strength.

The Sustainable label of the issuance highlights CABEI's leadership in sustainable finance as a benchmark ESG (Environmental, Social, and Governance) issuer. To date, the Bank has issued over US$6.9 billion in sustainable bonds, representing more than 58% of its total funding since its first issuance into ESG capital markets in 2019. Proceeds from this issuance will be used to finance or refinance social, green, and blue eligible projects in line with CABEI's Sustainable Bond Framework, further advancing the Bank's mission to foster integral and sustainable development in the region through high-impact projects.

CABEI Executive President Gisela Sánchez emphasized: "We are very pleased with this new and historic global issuance, which solidifies our position as a sustainable issuer committed to the region's development." President Sánchez also noted: "We value the response and commitment of our investors, as well as the crucial role of our member countries in strengthening our franchise value in the capital markets."

This landmark issuance reaffirms investors' confidence in CABEI's financial strength under its renewed financial strategy, which prioritizes prudent and conservative balance sheet management, rigorous technical standards, cost optimization, operational efficiency, and the integration of ESG principles.

CABEI is being represented by Gibson, Dunn & Crutcher LLP on the issuance.

This document does not constitute an offer to sell or subscribe for any securities. The Notes have not been and will not be registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws, and, unless so registered, may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The Notes were offered and sold only to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to non-U.S. persons outside the United States pursuant to Regulation S under the Securities Act.

Hector Barletta: [email protected]
www.bcie.org

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SOURCE Banco Centroamericano de Integración Económica