CABEI issues first bond under its new Sustainable Bond Framework

Tegucigalpa, November 27th, 2024 - The Central American Bank for Economic Integration (CABEI) successfully issued its first Sustainable Bond, raising 1.2 billion Turkish Liras (TRY), equivalent to US$34.7 million. This debut transaction, carried out under the recently published Sustainable Bond Framework, consolidates its position as a benchmark ESG issuer and reaffirms its commitment to sustainable development in the region. In addition, this issuance represents CABEI's second placement in Turkish Liras, highlighting its ability to diversify its funding sources.

In line with its renewed financial strategy, the Bank continues to expand its presence in global markets which has allowed it to issue in 26 currencies in 23 different markets, demonstrating a strong track record of innovation in sustainable finance. Since entering the capital markets with the issuance of its first Green Bond in the Formosa market in 2019, the Bank has consolidated its position as a leader in this area, with 28 ESG bond placements in excess of US$5.4 billion. These issuances have financed high-impact projects that contribute to the economic, social, and environmental development of the region.

CABEI's new Sustainable Bond Framework integrates the previous 2020 Green and Blue Bond Frameworks and the Social Bond Framework into a single unified and comprehensive Sustainable Bond Framework. It establishes guidelines for various types of bonds, including Green, Social, Blue, Blue, Sustainable and Thematic Bonds, expanding eligibility criteria in line with international best practices and market trends. The framework earned an “SQS2 - Very Good” rating from Moody's as its Second Party Opinion (SPO) provider, confirming its alignment with the International Capital Market Association's (ICMA) Green and Social Bond Principles and demonstrating a high contribution to sustainability.

Reflecting on the importance of this achievement, CABEI Executive President Gisela Sánchez highlighted, “With the launch of our new Framework and inaugural Sustainable Bond, CABEI leads the way in sustainable finance, demonstrating our ability to connect global investment with the needs of the region, driving transformative initiatives that generate tangible positive impact and open up new opportunities for the development of our member countries. ”

The Sustainable Bond issue was structured in collaboration with BNP Paribas, a strategic partner that played a key role in the development of the new consolidated framework. This alliance between two benchmarks in sustainable finance highlights the importance of joining efforts to promote financing initiatives that drive environmental and social progress. These actions are fundamental pillars of CABEI's Institutional Strategy 2025-2029, reaffirming its commitment to comprehensive and sustainable development for the benefit of the region.