Central American Bank unveils USD-72m green bond issue

The Central American Bank for Economic Integration (CABEI) last week said that it will be issuing a ZAR-1.03-billion (USD 72m/EUR 66m) green bond.

Japanese firm Daiwa Securities Group Inc (TYO:8601) will offer the bonds to individual investors and small and medium enterprises (SMEs) on the retail Uridashi market of Japan. The proceeds from the placement will be used for projects related to supporting climate change mitigation and adaptation initiatives in Central America, including energy efficiency, renewables and power infrastructure.

The four-year notes will be offered from August 4 to August 16 and will reach maturity on August 13, 2020. The coupon rate is yet to be set.

The green bonds mark CABEI’s first Socially Responsible Investment (SRI) bond issuance in any market to date. The Supranational Development Bank has USD 5.3 billion in energy-related loans, of which 68% support renewable energy and 20% energy infrastructure.

(ZAR 10 = USD 0.700/EUR 0.637)

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