The Central American Bank for Economic Integration (CABEI) set a new record by issuing a $2 billion Global Benchmark Social Bond with a three-year maturity and a 3.75 percent fixed coupon. The transaction represents the largest ever executed by CABEI and consolidates its return to the global benchmark market, the institution reported.
The issuance, structured under the 144A/Reg S format, reflects a sustained growth trend in CABEI’s benchmark issuances. It’s part of a funding plan that accompanies organic growth of the bank’s balance sheet and strengthens its position as a recurring benchmark issuer in global markets. This has been reinforced by a significant improvement in its credit profile, reflected in recent upgrades to its risk ratings after six years without change—reaching “AA+” with S&P and JCR from “AA,” following five positive actions in less than a year, plus a positive outlook on its “Aa3” rating with Moody’s.
The transaction registered exceptional demand from the international investment community, with an order book exceeding $9.3 billion—4.7 times the amount issued and also the largest in CABEI’s history. The operation involved more than 130 investors from five continents, including 35 new accounts among central banks, official institutions, multilateral institutions, and Tier 1 asset managers focused on issuers with the highest credit quality.
Strong support enabled historically competitive conditions, with significant compression from initial price levels of MS+57bps to MS+52bps in guidance, finally closing at MS+49bps at launch. Throughout the process, the order book kept growing in both volume and account quality, allowing the issue to close at levels even more favorable than those in the secondary market for the CABEI curve and its comparable peers.
In line with its Institutional Strategy 2025–2029, this operation also constitutes the largest social/sustainable bond issued by a Multilateral Development Bank in Latin America, reaffirming CABEI’s leadership as one of the issuers with the longest track record globally in placing ESG debt. The proceeds will finance social and environmental projects eligible under CABEI’s Sustainable Bond Framework in priority sectors such as education, health, social development, and connectivity. CABEI Executive President Gisela Sánchez said the conditions achieved reflect the bank’s efforts to optimize funding costs and pass on these efficiencies to member countries through lower interest rates.
“This issuance reaffirms investors’ strong confidence in CABEI’s management as the driving force behind positive transformation in the region,” she said.
