The Central American Bank for Economic Integration (CABEI) published its first Annual Sustainable Bond Report, marking a major step in its push for transparency and sustainable finance, the bank announced. The report was prepared with advisory support from BNP Paribas and externally validated by Moody’s through a Post-Issuance Second Party Opinion that confirmed CABEI’s allocations align with International Capital Market Association 2025 Green and Social Bond Principles. Moody’s gave the framework a “Very Good” score in its November 2024 assessment.
The bank has shifted from reporting on individual bonds to a portfolio-level approach as its sustainable finance program grows. The report covers CABEI’s sustainable bond program as of December 31, 2024, and sets the foundation for future annual publications.
CABEI has become a major player in sustainable finance across Central America, using bond proceeds to fund projects that address climate change, social development, and environmental protection. The bank issues bonds in eight different currencies, reflecting its expanding presence in international capital markets. Sustainable bonds have gained popularity as investors seek opportunities that generate financial returns while supporting environmental and social goals. CABEI’s approach targets specific development challenges in member countries including infrastructure gaps, food security, and climate adaptation needs.
In 2024, CABEI issued five sustainable bonds worth $943 million, including its first Sustainability Bond and pioneering Mother Health Bond. From 2019 to 2024, the bank completed 28 sustainable bond transactions totaling $5.4 billion, with 26 bonds worth $4.8 billion still outstanding by year-end. All proceeds from outstanding bonds have been fully allocated to eligible projects at both commitment and disbursement levels. New eligible commitments in 2024 alone exceeded $1.7 billion, covering nine projects in areas like affordable infrastructure, food security, renewable energy, nature protection, sustainable water management, and climate adaptation.
The bank has ramped up its sustainable financing efforts in 2025, issuing five more ESG-labeled bonds worth $2.7 billion including Sustainability, Blue, Social, and its first Healthcare Bond. These transactions bring CABEI’s total to 33 sustainable bond issuances worth $8.1 billion since the program began. The report provides both quantitative and qualitative information on environmental and social impacts of funded projects, supported by CABEI’s Development Impact Evaluation System that tracks results over time.
The milestone demonstrates CABEI’s commitment to supporting the development agenda of Central American member countries through innovative financing mechanisms. By providing detailed annual reporting on allocation and impact, the bank meets international standards for transparency while building investor confidence in sustainable finance. The success of CABEI’s program shows growing appetite for development finance bonds that address regional challenges while meeting strict environmental and social criteria.
