Commitment to the well-being of the region.
The Republic of China (Taiwan) joined CABEI in 1992 and is one of the Bank's first non-regional members; its incorporation enabled the Bank to issue and place its first bonds on the international market. At the close of 2021, it is the non-regional member with the highest shareholding (11.4%) with a subscribed capital of USD776.3 million and contributions amounting to USD133.6 million.
In the coordination of development projects, the Republic of China (Taiwan) cooperation for the region focuses on key areas for poverty reduction, such as food security, education, agriculture, Micro, small and medium-sized enterprises, agribusiness, coffee producing sector affected by rust, export promotion and forestry and industrial development.
As a relevant fact, in 2020, thanks to the alliance with its non-regional partner country, CABEI made it's 19th issue in the Taiwan capital market, historically totaling US$ 2.3 billion.
In 2021, CABEI opened its representative office in the Republic of China (Taiwan) located at the Taipei 101 building.
CABEI launches yet another Social Bond through its 25th issuance in the Republic of China (Taiwan)
Tegucigalpa, January 11, 2023. The Central American Bank for Economic Integration (CABEI), rated Aa3/AA (Moody’s/S&P), priced a new US$130 million, 10-year Social Bond in the Taiwanese Capital Market. This transaction also represents its second consecutive issuance social bond issuance for 2023, decidedly reflecting CABEI’s commitment to promote sustainable projects in the region, pursuant to its corresponding Social Bond Framework.
CABEI’s Executive President, Dr. Dante Mossi emphasized the relevance of the Republic of China (Taiwan) as the bank’s most relevant market, more than 25 years after its capital markets’ debut, stating that “the Republic of China (Taiwan) is not only our largest shareholder, enabling our “AA” rating, but is also the most important source of funding for the bank; as we have issued more than US$3.2 billion representing 20% of our historical bond issuances”. In that sense, Dr. Mossi also highlighted the fact that “during the past year, more than 36% of our bond issuances were placed in Taiwan, reflecting our position as the best credit in LATAM, but most importantly the trust vested by its investors in times of global financial turmoil.”
As mentioned earlier, this new social bond placement follows the successful launch of a 10-year “Education Bond”, as CABEI continues to provide attractive and competitive investment alternatives to ESG investors, whose proceeds are directed towards the most important development projects within the Central American.
Finally, it is worth noting that this Issuance reaffirms the strong relation between CABEI and Taiwanese investors dating back to 1997, which has continually developed over the years and will continue to evolve given the Bank’s organic growth and further strengthening of its credit rating.