CABEI issues its first green bond and second ESG bond in the Swiss market
Tegucigalpa 23 November, 2021. The Central American Bank for Economic Integration (CABEI) has issued its inaugural green bond in the swiss market and second ever global green bond. This inaugural issuance with green label was a CHF 220 million, equivalent to US$ 237 million with a yield of 0.11% for a 7 year tenor. With this issuance CABEI consolidates as a solid ESG issuer and a well-known participant in the swiss market by having issued a social bond in september of this year.
Taking into account this green bond issuance, CABEI has issued a total of four ESG bonds on year 2021 for a total of USD 1.2 billion, the first one was a social labeled bond in the US Benchmark market for US$500 million, the second for the Recovery and Reconstruction COVID-19 bond in the Mexican market for an equivalent amount of US$245 million and the third issuance with a social labeled as well, for US$ 218 million in the swiss market.
These notes confirm CABEI´s commitment on developing and contributing to a more sustainable Central American region as well as the funding of projects that contribute to the UN´s Sustainable Development Goals through the green and social bond framework of CABEI.
The net proceeds of the Green Bond issuance will be used to finance and/or refinance eligible Green Projects and Assets under CABEI’s Green Bond Framework. CABEI´s Green Bond Framework abides the four core components of ICMA´s Green Bond Principes and has obtained a favorable Second Party Opinion by Sustainalytics.
A wide range of investors participated on this transaction such as banks 11%, Pension Funds 11%, Insurance companies 16%, Asset Managers 62%.
Switzerland represents 19% of CABEI´s bond issuances, with an aggregated amount of US$ 2.6 billion and a total of 16 notes in Switzerland since 2010, which makes the swiss market one of the main key funding markets for the bank.
CABEI´s Executive President, Dr. Dante Mossi stated “the year 2021 has been a record year for CABEI given that the bank has issued four ESG bonds in this year. This is in line with CABEI´s strategy, believing that environmental and social projects will bring positive impacts to the Central American population”. Furthermore, Dr. Mossi explained “These much needed funds will be to support our Resilient Reconstruction Program”.