CABEI Issues Its First Green Bond
CABEI supports climate change mitigation and adaptation initiatives through related projects in Central America.
August 2, 2016.- On July 29th The Central American Bank for Economic Integration (CABEI) offered its first Green Bond ever. The Green Bonds were sold to individual investors in Japan. This is the first time a Central American issuer sells a Green Bond in Japan.
The bonds were sold in South African Rand (ZAR) for the amount of ZAR 1.0 billion (equivalent to USD 72.9 million) adding another currency to the eighteen currencies already tapped by CABEI historically. The tenor of the bonds is 4 years.
Executive President of CABEI DR. Nick Rischbieth indicated that “Green Bonds give Japanese investors an opportunity to support CABEI and Central America in the implementation of programs and projects contributing to energy efficiency, renewable energy and energy infrastructure aiming for climate mitigation and adaptation initiatives in the Central American region”.
This transaction is the result of a recent commitment announced by the Bank at the Governors Meeting held last April in Panama, to promote and support financing initiatives aimed at addressing adaptation and mitigation with respect to climate change. In addition, CABEI counts with other instruments to address climate change such as the recent accreditation by the Adaptation Fund and the current undergoing process of certification by the Green Climate Fund.
CABEI supports member countries in achieving sustainable development goals by improving the structure, diversity and efficiency of its member countries´ energy matrixes and power generation with the addition of renewable sources and electric infrastructure, to reduce energy waste and to improve the quality and coverage of this service.
CABEI has participated in more than 220 projects with total investments approved for US$5.3bn in energy related loans, of which 68% (US3.6 bn) are disbursed to renewable energy and 20% (US$1.1bn) are disbursed to energy infrastructure (including the Central American Electrical Interconnection Infrastructure called SIEPAC).
CABEI is a Supranational Development Bank with 12 member countries and has spent 56 years financing sustainable development and regional integration in Central America since its establishment in 1960. Its resources are continuously invested in projects that foster development to reduce poverty and inequality; strengthen regional integration and the competitive insertion of its member countries in the global economy; providing special attention to environmental sustainability.