CABEI issues second green bond and third Environmental, Social and Governance bond in the Swiss market
The three green bonds issued by the multilateral add up to US$770 million.
Tegucigalpa, June 21, 2022.- The Central American Bank for Economic Integration (CABEI) issued its second consecutive annual green bond in the Swiss market and its third Environmental, Social and Governance (ESG) green bond. This green label issuance is for 155 million Swiss francs, equivalent to US$158.6 million with a fixed rate of 1.5462% for a term of 4.42 years.
The funds received will be used to finance projects and green assets eligible under CABEI's Green Bond Framework that comply with the principles of the International Capital Markets Association (ICMA), and will also contribute to creating a more resilient Central American region, as well as generating a positive impact on the Sustainable Development Goals (SDGs).
“This new issue demonstrates the confidence of investors in CABEI in a context of high volatility in global financial markets. Switzerland represents 19% of CABEI's historical bond issues, with more than US$2.8 billion and 17 notes since 2010, making it one of the key markets for fundraising. Green Bonds have gradually become an important instrument to face climate change with the development of sustainable projects in the region, so we will continue our efforts to continue issuing them”, said the Executive President of CABEI, Dr. Dante Mossi.
A wide range of investors participated in this transaction, such as asset managers (56%), private banks (20%), insurance companies (18%) and pension funds (6%).
CABEI has previously issued two green bonds; the first was the regulation transaction S “Reg. S” registered in the stock exchanges of Taiwan and Luxembourg, which received an aggregate demand of 3.2 times the original amount of US$300 million and whose transaction result was US$375 million. The second in the Swiss market in 2021, the largest in the Bank's history in this market, and was driven by high demand from ESG investors, which allowed the Bank to raise 220 million Swiss francs; for a total of US$770 million.