To conmemorate 200 years of independence of Central America, CABEI issues the first-ever Social Bond in the Swiss Market for CHF200M
Tegucigalpa September 15th 2021.- The Central American Bank for Economic Integration (CABEI) achieved a milestone by becoming the first Multilateral Development Bank to to issue a social Bond in the Swiss market.
This social bond issuance amounted CHF200 million equivalent to US$218 million, and a 10 year tenor. A wide range of investors participated in this transaction such as Asset managers, Insurance companies, Private Banks and Pension funds, distributed as follows 68% Asset managers, 14% Insurance companies, 13% Private Banks and 5% Pension funds. With this first social bond issuance in the Swiss market, CABEI reaffirms its commitment to support the social and economic development of the Central American people through the financing and refinancing of high impact projects and programs.
Prior to this issuance, during the first semester of year 2021, CABEI had already placed two social bonds in the international markets, a global USD issuance for US$500 million and the second in the Mexican market for an equivalent amount of US$245 million.
This issuance is part of CABEI´s institutional sustainable strategy to continue supporting social projects in the region. This social bond was issued based on CABEI´s Social Bond Framework that abides by the International Capital Market Association´s (ICMA) Social Bond principle and also received a positive Second-Party Opinion from Sustainalytics.
CABEI´s Executive President, Dr. Dante Mossi stated “This third social bond issuance in 2021 clearly reflects the approach CABEI has taken to provide a better standard of living for the people of Central America. With these funds, CABEI will finance various social projects from its portfolio that will generate positive impact in the region and support the road to recovery from COVID-19 and natural disasters negative impacts such as Hurracaines Eta and IOTA in 2020”.
Historically, Switzerland represents approximately 18% of CABEI´s bond issuances, with an aggregate amount of US$2.4 billion, CABEI has issued a total of 15 notes in the aforementioned market since 2010.