CDB successfully raised EUR250 million on the German capital market
The Aa1/AA+ Stable-rated Caribbean Development Bank (CDB) has successfully concluded its inaugural borrowing in the German capital market, with the issuance of a EUR250 million 20-year registered bond.
“Our entry into the German capital market has allowed CDB to further diversify its investor base away from traditional sources. Our Borrowing Member Countries will be able to access these resources, on very attractive terms, to pursue their sustainable development agendas for the benefit of Caribbean citizens,” said CDB President Dr. Wm Warren Smith.
Launched on November 14, the offering was arranged by Deutsche Bank AG, acting as sole book runner. Favourable market conditions, and strong appetite for the credit from German investors, such as insurance companies, pension funds and asset managers, enabled CDB to raise these funds at an annual interest rate of 0.875%.
This successful bond issuance, which represents the Bank’s longest-dated borrowing, is also testament to CDB’s financial and operational strength and its investor appeal. Prior to this transaction CDB raised 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+ (Stable), respectively.