The Central American Bank for Economic Integration (CABEI) has issued a social bond for an amount equivalent to nearly 300 million dollars in the Mexican capital market. The resources will be used to finance eligible social projects under CABEI’s “Social Bond Framework” to promote social development in the Central American region, in pursuit of the Sustainable Development Goals (SDGs).

The bond is structured in two tranches: i) a first tranche for 204 million dollars with a 3.6-years term at a floating-rate, and ii) a second tranche for 96 million dollars with a 10-years term at a fixed-rate. The placement was oversubscribed by 1.65 times the target amount. The issuance was rated “Aaa.mx” and “mx.AAA” by rating agencies Moody’s and Standard & Poor’s respectively.