The Central American Bank for Economic Integration (CABEI) sold CHF110 million ($115 million) worth of five-year green bonds in the Swiss market on Monday, according to a source involved in the deal.
CABEI priced the new 2027 notes at par to yield 2.1375%, or 72 basis points over mid-swaps, after opening the initial price talk with the spread between 70 and 75 basis points, the source said.
BNP Paribas and UBS were joint bookrunners on the bond sale. CABEI plans to use the proceeds from the sale to fund “eligible projects under its green bond framework,” the source said.
The deal marks CABEI’s second green bond sale in the Swiss market this year. It issued CHF155 million in four-year green bonds in June and $75 million in of two-year bonds in its first private placement in US dollars in Switzerland in May.
It also sold CHF200 million worth of 10-year social bonds in the Swiss market in September last year, following CHF150 million in five-year notes in June 2020 and CHF200 million in March 2019.
Last week, CABEI went to the Taiwanese bond market for the third time this year with a deal for $250 million in 10-year bonds.
Moody’s affirmed CABEI’s Aa3 rating with a stable outlook in August last year, saying the bank benefits from strong financial ratios that have shown stability over time and compare well with peers.