CAF, the Latin American development bank, has raised €1 billion through a seven-year green bond in the European market, marking its first public green note offering in almost three years and reinforcing investor demand for sustainable development finance.
A successful European placement
The bank sold 3.5% notes due in 2033 at 99.555, giving investors a yield of 3.573%. The transaction was priced at 50 basis points over mid-swaps, tighter than the initial price talk in the 57 basis point area.
Demand improves pricing
The move from initial price talk to final pricing showed solid investor appetite. Guidance had already been tightened to around 54 basis points before the final level was set, according to Manuel Valdez, CAF’s head of debt capital markets and derivatives.
Green finance focus
The proceeds are expected to support eligible green projects across Latin America and the Caribbean. For CAF, green bonds are part of a broader strategy to fund climate-related infrastructure, clean energy, sustainable transport and environmental resilience.
Why it matters
Latin America faces major investment needs in energy transition, water systems, urban infrastructure and climate adaptation. Development banks such as CAF play a central role by connecting international capital markets with long-term regional financing priorities.
A signal to investors
The deal also shows that high-quality supranational and development bank issuers can still attract strong demand in Europe, even as bond markets remain sensitive to interest rates, inflation expectations and sovereign risk.
A strategic return
CAF’s return to the public green bond market after almost three years gives the bank fresh visibility among ESG-focused investors. It also strengthens the role of sustainable debt as a financing tool for Latin America’s development agenda.
Newshub Editorial in Latin America – 20 May 2026
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