Latham & Watkins counsels Latin American Development Bank CAF in capital markets transactions
Latham & Watkins has advised CAF – Development Bank of Latin America and the Caribbean on two debt issuances. In a historic first, CAF launched US$500 million in hybrid capital notes, becoming the first multilateral financial institution in Latin America to incorporate hybrid capital into its funding structure.
The transaction drew over US$3.2 billion in orders from more than 200 institutional investors around the world. Recognized as 100% equity by major rating agencies, the notes are expected to expand CAF’s lending capacity by up to four times the issued amount.
Latham also advised CAF on the issuance of its first-ever Blue Bond, a €100 million offering aimed at financing sustainable and climate-resilient coastal development across Latin America and the Caribbean. The Blue Bond was structured in collaboration with the United Nations Development Programme (UNDP), which acted as Technical Advisor.
CAF is a multilateral financial institution committed to promoting sustainable development and regional integration across Latin America and the Caribbean. Its shareholders include 21 Latin American and Caribbean nations, as well as Spain and Portugal.
This capital markets transaction can entail in more capital to fund infrastructure and development in Latin America, increased availability of funding for climate and sustainability-related projects, and maybe a potential model for other Latin American institutions looking to diversify their financing structures.
The cross-border Latham & Watkins team advising on both issuances was led by partners Basil Al-Jafari (pictured left) and Roderick Branch (pictured right), with support from associates Lois Pickering, Concepción Olivera, and Wyatt Wisnosky.
