CABEI prices the largest bond in its history
The oversubscribed 3-year Social Bond offering set several historical milestones for CABEI and represents its fourth consecutive ESG issuance in 2023.
Tegucigalpa, February 01, 2023. The Central American Bank for Economic Integration (CABEI), successfully priced a US$1.25 billion global bond due 2026 under its Social Bond Framework. This marks CABEI’s largest ever bond issuance and its third benchmark deal since achieving its “AA” rating back in 2019, confirming its commitment to continually access the primary market.
BofA Securities, BNP PARIBAS, Crédit Agricole CIB and HSBC are acting as joint book-running managers for the offering.
The social bond priced following CABEI’s largest ever orderbook of approximately US$2.55 billion (5x the minimum target of US$500 million), which attracted real money investor demand from diversified high-quality accounts throughout a two-day execution period. It also represents CABEI’s 130th MTN issuance and its fourth consecutive Environmental, Social and Governance (ESG) transaction in 2023, consolidating its position as the most relevant multilateral for the Central American region.
CABEI’s Executive President, Dr. Dante Mossi was ecstatic to see a strong start to 2023, highlighting the institution’s ESG commitment by stating that: “Since its first ESG issuance in 2019, CABEI has raised more than US$3.9 billion under its Social and Green & Blue Frameworks to finance robust programs and projects with a high and measurable impacts on development.”
The orderbook for the transaction comprised 130 different accounts from 33 countries, and its allocation was predominantly led by Central Banks/Agencies (67%), followed by Asset Managers (12%), Banks (12%), Pension Funds (7%), and Insurance Companies (2%). In light of the above, Dr. Dante Mossi stated that “the allocation by investor type demonstrates CABEI’s franchise value and recognized track record as a global issuer and provider of stable and competitive funds to its borrowing member countries”.
The social bond will be listed on the Luxembourg Stock Exchange. CABEI also expects to make its listing debut on the London Stock Exchange, after gaining recognition as a “public international body” by the UK’s Financial Conduct Authority, pioneering the legal process through which certain entities can obtain this recognition. CABEI is represented by Gibson, Dunn & Crutcher LLP on this transaction, and the underwriters are represented by Davis Polk & Wardwell LLP.