The Central American Bank for Economic Integration (CABEI) issues its first global Green Bond
São Paulo 15/11/2019 09:40: The Central American Bank for Economic Integration (CABEI) issued a US$375 million Floating Rate “USD Reg S Only” 5-year Green Bond, listed on both the Luxembourg and Taipei Stock Exchanges, at a spread of 85bps over 3M-LIBOR (2.37% fixed rate equivalent).
The green bond proceeds will finance projects and assets under CABEI’s Green Bond Framework in sectors including sustainable land use, renewable energy, sustainable water management and clean transportation.
This first global Green Bond issuance comes after CABEI’s Board of Directors approved a US$550 million loan to support Costa Rica’s Electric Passenger Train in San Jose’s Greater Metropolitan Area. The new train will reduce carbon emissions, improving the area’s overall health and air quality, and will serve as a benchmark for the other similar regional projects.
Building on the green finance momentum in the region, CABEI and CBI will publish a joint report in Q1 2020, which will map out the opportunities to further develop green finance across Central America.
Thatyanne Gasparotto, Head of Latin America, Climate Bonds Initiative
"CABEI's first global green bond issuance is a strong signal to the Central American region: the transition to a low-carbon economy is happening already and what we see now is more opportunities to finance climate change adaptation and mitigation programs and projects. We'll be working together with CABEI and other stakeholders in the region to see more issuances coming in 2020."
Dante Mossi, Executive President, Central American Bank for Economic Integration (CABEI)
"This first global Green Bond issuance, in tandem with the Bank’s Zero Carbon Emissions pledge and its accreditations with global funds such as the Green Climate Fund and the Adaptation Fund, will further strengthen the Institution’s impact on the region’s resilience to climate change. In this context, during the 2015-2018 period, CABEI approved US$3,659.5 million to finance climate change initiatives, which represents 37% of the Bank’s total loan approvals for the period and considers the channeling of approximately US$847.0 million in external funding from other development partners."
Gerente de Comunicação LATAM,
Climate Bonds Initiative
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Note to Editor:
About the Climate Bonds Initiative: is an international, investor-focused not-for-profit. We're the only organisation working solely on mobilising the $100 trillion bond market for climate change solutions. For more information and latest green bond data, please visit: www.climatebonds.net
About the Central American Bank for Economic Integration (CABEI): The Central American Bank for Economic Integration (CABEI), is an international multilateral development financial institution. Its resources are continuously invested in projects that foster development to reduce poverty and inequality; strengthen regional integration and the competitive insertion of its member countries in the global economy; providing special attention to environmental sustainability.