BRIDGETOWN, Barbados: The Caribbean Development Bank (CDB/the Bank), rated Aa1/AA+/AA+, successfully raised CHF100 million through a five-year bond paying 0.59 percent fixed interest in the Swiss market. This marks the bank’s first issuance under its newly established Sustainable Finance Framework (SFF).
The transaction demonstrated strong investor confidence, closing just 90 minutes after opening. Robust demand allowed CDB to price at the top of the initial range, reflecting strong appetite for the Bank’s credit and its sustainable development mandate. The investor base was led by Treasuries at 62 percent, followed by Asset Managers (17%), Private Banks (11%), and Pension Plans and Insurance Companies (5% each).
The SFF is enabling CDB to raise funds exclusively for projects that foster climate resilience, environmental sustainability, and promote inclusive economic and social development across the Caribbean. The Framework is fully aligned with the International Capital Market Association’s Principles, including the Green Bond Principles, Social Bond Principles, Sustainability Bond Guidelines, and Sustainability-Linked Bond Principles.
Proceeds from bonds issued under the SFF will be allocated to eligible projects within CDB’s Borrowing Member Countries, targeting areas such as climate change adaptation, renewable energy, energy efficiency, sustainable water and wastewater management, education, food security, and support for micro, small, and medium-sized enterprises.
The inaugural sustainable bond strengthens CDB’s yield curve and demonstrates the bank’s financial resilience while underscoring its commitment to embedding sustainability across its operations.
