CABEI debuts in Sterling Market

• CABEI's debut in sterling strengthens its position as a global ESG bond issuer.
• This unprecedented transaction has high potential for financing social, green, and blue initiatives.

TEGUCIGALPA, Honduras, Feb. 13, 2025 /PRNewswire/ -- The Central American Bank for Economic Integration (CABEI), which has the highest rating for a Latin American issuer of AA/Aa3 by S&P/Moody's, has priced its first benchmark-sized bond in pounds sterling (GBP), raising GBP750 million, as a result of a strong reception from global investors, especially from the United Kingdom.

Issued under a Reg S format, the three year note with a sustainable label, represents a key milestone for CABEI's trajectory in the capital markets under its renewed Financial Strategy, which advocates for issuances in deeper and more liquid markets, such as the UK sterling market. With this issuance in pounds sterling, CABEI has issued bonds in 27 different currencies, reinforcing its commitment to the diversification of markets and investors; a key element of its high credit rating. Following the historic global issuance for US$1.5 billion in January, this new placement brings CABEI's financing to more than US$2.43 billion for 2025, all under the sustainable label.

The bond generated strong demand from high-quality investors, demonstrating the new market's confidence in CABEI's renewed financial strength and its commitment to sustainable development in the region. The order-book exceeded GBP3.1 billion, with the participation of over 100 investors, representing an oversubscription of 10.3 times the initial objective and 4.1 times the amount issued. This enabled CABEI to raise a larger amount than initially expected, while significantly optimizing its pricing, which is quite unprecedented for a debut on this market. The allocation was distributed among central banks, official institutions, investment funds, insurance companies, pension funds and bank treasuries.

The Executive President of CABEI, Gisela Sánchez, commented: "This inaugural issuance in an important and new market is a great achievement for CABEI and we are very grateful for the strong support of investors," the President added, "it is also a testament of the growing collaboration between CABEI, its member countries and the United Kingdom."

This transaction reaffirms CABEI's commitment to sustainable financing as a cornerstone of its institutional and financial strategy. The proceeds will be used to finance or refinance eligible projects under CABEI's Sustainable Bond Framework, fostering economic, social and environmental development in member countries.

The bond was structured by a syndicate of banks comprising Barclays Bank, BNP Paribas and Bank of America (Merrill Lynch International). CABEI is being represented by the law firm Gibson, Dunn & Crutcher LLP.

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SOURCE CABEI