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Get the news on sustainable finance & investment in Latin America Name * First Last Email * Company * Job Title * Δ NEWSLETTER DELIVERED MONTHLY THANKS TO The Central American Bank for Economic Integration (CABEI) and Mexican real-estate investment trust Fibra Uno tapped the international bond market on Thursday with ESG bond placements totaling $2.3 billion, according to sources involved in the deals. CABEI printed $1.5 billion worth of three-year sustainability bonds, while Fibra Uno, or Funo, issued $800 million in a two-part sale of sustainability-linked bonds (SLBs), the sources said. The Honduras-based development bank priced 4.75% 2028s at 99.793 to yield 4.825%, or 70 basis points over SOFR mid-swaps. It opened the initial price talk on Monday at around 75 basis points and set guidance on Tuesday in the 72 basis points area, plus or minus two basis points, before launching the deal, according to a source involved in that deal. ADVERTISEMENT The Sustainable Bond that Transformed Central America’s Financial Markets Thanks to this operation, Banco Promerica improved people’s lives, helped many SMEs successfully navigate the pandemic, and contributed to the economic and social development of the region. It was an unprecedented initiative. Barclays, Bank of America, BNP Paribas and Crédit Agricole were joint bookrunners on the offering, the person said. The notes will be listed in the London and Luxembourg stock exchanges and governed by New York law, according to an investor presentation seen by LatinFinance . CABEI will use the proceeds to fund investments under its sustainable bond framework, such as renewable energy, clean energy, affordable housing and water management projects, the presentation said. SLB ISSUE Funo, for its part, sold $500 million worth of seven-year SLBs and $300 million worth of 12-year SLBs, according to a source involved in that deal. The firm priced the 2032s at par to yield 7.7% after opening the initial price talk between 7.7% and 7.8%; and it priced the 2037s at par to yield 8.25% after opening the deal around the same rate, the source said. BBVA and JPMorgan led the Rule 144A/Reg S offering as global coordinators, with Alterna Securities, Bank of America, Citi, Goldman Sachs, Scotiabank and Santander as joint bookrunners, the person added. Funo is offering to pay a step-up rate of 25 basis points on the notes if the company falls short of its target for increasing the proportion of certified property gross lease areas in its portfolio, according to an investor presentation seen by LatinFinance . The firm plans to use the proceeds of the SLB issuance to redeem it 5.25% 2026 global notes ahead of schedule, to repay other debt and cover general corporate purposes, the presentation said. More Sustainable Finance & Investment News FREE TO READ THANKS TO Vesta picks up sustainable loan LatAm sovereigns pile into nature swaps Vibra taps Brazil bond market MSU Energy unit prices green bond Ecuador sews up debt-for-nature swap Grenergy sells stake in Chilean solar project Órigo gets IFC loan Difare prints Ecuador’s first SLB Brazil lays foundation for regulated carbon market MSU Energy unit to sell green bond Bond investors build ESG into fundamental analysis CFE prints sustainable bonds Load more posts Something went wrong. Please refresh the page and/or try again.
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