The Central American Bank for Economic Integration (CABEI) has solidified its position in global capital markets by pricing a $2 billion Global Social Benchmark Bond, marking its largest issuance to date. This issuance underscores CABEI’s rising credit profile, broadening investor base, and leadership in sustainable financing, signaling increasing capital market access for Latin American development infrastructure.
CABEI priced a $2 billion three-year Global Social Benchmark Bond with a fixed coupon of 3.75%, structured under the 144A/Reg S format, representing the largest bond transaction in the Bank’s history. Demand surpassed $9.3 billion, with an order book 4.7 times oversubscribed, attracting over 130 investors across five continents, including central banks, official institutions, multilaterals, and top-tier asset managers. The issuance tightened from initial guidance of MS+57 bps to a final spread of MS+49 bps, outperforming the secondary market levels and comparable peers. CABEI’s credit ratings have improved significantly, reaching “AA+” with S&P and JCR, up from “AA” after five positive rating revisions within a year. Moody’s also maintains a positive outlook on its “Aa3” rating. These upgrades reflect the effectiveness of the Bank’s renewed financial strategy and improved credit metrics.
This issuance aligns with CABEI’s 2025-2029 Institutional Strategy and is the largest social or sustainable bond ever issued by a Multilateral Development Bank (MDB) from Latin America. Proceeds will finance eligible social and environmental projects in priority sectors including education, healthcare, social development, and connectivity across member countries, under the Bank’s Sustainable Bond Framework. This framework follows ICMA Social Bond Principles and received a positive second-party opinion from Sustainalytics. CABEI’s Executive President highlighted that optimized funding costs will lower borrowing expenses for member countries, supporting sustainable development initiatives.
This landmark social bond issuance affirms CABEI’s role as a leading ESG debt issuer from Latin America, supported by prudent financial management and operational discipline, while enhancing the region’s capacity for socio-economic and environmental improvements.
