CAF sets up green bond in euros

CAF sets up green bond in euros

Bonds Debt Capital Markets Corporate & Sovereign Strategy Fixed Income Europe Venezuela

CAF plans to be the first development bank from Latin America to issue green bonds in euros, looking to capture a growing investor base interested in buying debt for environmentally friendly projects.

"We want to tap a new pool of investors, and there are many European funds focused on environmental projects," said Manuel Valdez, the head of international bond issues at CAF.

Valdez declined to give an exact amount for the benchmark-sized issue, but a source at CAF said the bank will likely print no more than $500m in euro-denominated green bonds in the second half of the year, depending on market conditions.

CAF is in talks with several banks to lead the sale of the seven-year notes, the source added.

Chile also plans to sell green bonds in euros in the next few weeks, after it became the first sovereign issuer in Latin America to sell international green notes with a $1.42bn deal in the dollar market earlier this week.

CAF issued €750m ($842m) in five-year, euro-denominated bonds in January, led by Barclays, BNP Paribas and JPMorgan. It sold $130m in green bonds last year, including $50m in five-year notes in November. It also issued COP150bn ($46.3m) in 10-year green bonds in Colombia in May last year.

The news that moves markets

Read the day's transactions and rumors right in your inbox.

Start free trial