CAF (Development Bank of Latin America and the Caribbean) has launched its first blue bond, the Blue LAC Bond, to support sustainable coastal development and climate resilience in the region. Additionally, CAF is committing a substantial investment of USD 2.5 billion to bolster the sustainable blue economy in Latin America and the Caribbean.
Here’s a more detailed breakdown:
Blue LAC Bond:
- CAF raised EUR 100 million through the issuance of the Blue LAC Bond.
- The bond is a 5-year instrument, maturing on June 11, 2030, with a 2.975% annual coupon.
- The bond was fully subscribed by BNP Paribas Cardif.
- The UNDP served as the technical advisor, helping align the bond with the UN Sustainable Development Goals (SDGs).
- The proceeds will be used to finance eligible blue projects, such as sustainable water management infrastructure in coastal zones.
- Initial projects will be located in Brazil, Ecuador, and other countries in the region.
USD 2.5 Billion Investment:
- This investment aims to promote the sustainable blue economy and preserve the region’s oceans.
- The investment doubles CAF’s previous commitment made in 2022.
- CAF is positioning itself as a leading multilateral organization in blue finance.
- The funding will support responsible tourism, artisanal fishing, clean technologies, ecosystem restoration, ocean renewable energies, and the decarbonization of maritime transport.