CAF–the development bank of Latin America and the Caribbean has launched its first Blue Bond, raising €100 million to support sustainable and climate-resilient coastal development across Latin America and the Caribbean.
The 5-year LAC Blue Bond, maturing on June 11, 2030, has an annual coupon of 2.975% and was fully subscribed by BNP Paribas Cardif.
CAF will use the proceeds to finance eligible blue projects, including the development of sustainable water management infrastructure in coastal areas that contribute to the protection of nearby marine ecosystems and improve the adaptation of local communities.
Initial project locations include Brazil, Ecuador, and other countries in Latin America and the Caribbean. CAF said it has channeled more than USD$1.3 billion toward marine and coastal initiatives in 16 countries since 2022. That includes including support for coral restoration, sargassum management, energy transition in the shrimp sector, and marine sanitation.
“This Blue Bond is a very important step in CAF’s journey to scale climate and nature finance in Latin America and the Caribbean,” said Gabriel Felpeto, CAF ’s Vice President of Finance and CFO. “It reflects our strategic focus on mobilizing private capital for sustainable development and our commitment to strengthening the region’s resilience to climate risks. By anchoring this transaction in our new Sustainable Finance Framework, we are setting a clear precedent for future thematic issuances that offer both environmental integrity and development impact.”
The transaction was developed in collaboration with the United Nations Development Programme (UNDP), which acted as Technical Advisor, leveraging its expertise in the UN Sustainable Development Goals (SDGs) and thematic debt to enhance strategic partnerships with Multilateral Development Banks (MDBs).
“Aligning capital flows with climate and development goals is key to building resilient and sustainable futures,” said Michelle Muschett, Under-Secretary-General and Regional Director of the UNDP Regional Bureau for Latin America and the Caribbean. “Blue bonds can mobilize private capital for blue economies, marine conservation, and coastal protection.”
