BRIDGETOWN – The Barbados-based Caribbean Development Bank (CDB) on Wednesday said it had been able to successfully executed its second borrowing in the German capital market through the issuance of a US$100-million 20-year registered bond and a US$50-million 22-year registered bond.
“The bond issuance on the German capital market allows CDB to further strengthen the diversification of its investor base away from traditional sources.
“On highly attractive terms, our borrowing member countries (BMCs) will be able to access these resources to build resilience and support sustainable development initiatives for the overall benefit of Caribbean citizens,” said CDB President Dr Gene Leon.
The region’s premier financial institution, which has an Aa1/AA+ rating, said that bonds were offered on the German market on October 15 by Deutsche Bank AG, acting as sole book runner.
It said favourable market conditions and a strong appetite for CDB’s paper enabled the Bank to raise 20-year funds at an annual interest rate of 2.55 per cent and 22-year funds at an annual interest rate of 2.50 per cent. The US$50-million bond issuance represents the CDB’s longest-dated borrowing.
The CDB said that this most recent raising allows for the build-out of a yield curve for its debt securities and is a testament to the bank’s financial and operational strength, and its appeal amongst global fixed-income investors.
Prior to this transaction, CDB raised EUR250 million (One Euro=US$1.29 cents) through the placement of a 20-year bond in the German market in 2019 and CHF145 million through the placement of a 12-year bond in the Swiss market in 2016.
Earlier this year, international credit rating agencies, S&P Global Ratings, Moody’s Investors Service and FitchRatings re-affirmed the Bank’s rating as AA+ (Stable), Aa1 (Stable) and AA+ (Negative), respectively. (CMC)
