Caribbean Development Bank raises €250M from bond issue in Germany

The Caribbean Development Bank (CDB) has raised €250 million from its first issuance of a 20-year registered bond in the German capital market.

Deutsche Bank AG was the sole dealer and arranger of the bond, which opened on November 14, 2019, with a coupon rate of 0.875 per cent.

A view of Deutsche Bank AG’s building in Frankfurt am Main, Germany.
(Photo: S&P)

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 W Warren Smith

The regional bank attributes the take-up of the bond to favourable market conditions and a strong appetite for the credit from German investors, including insurance companies, pension funds and asset managers.

President of the Caribbean Development Bank Dr Warren Smith (Photo: CARICOM Today)

“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,” a release from the CDB stated.

Earlier this year, international credit rating agencies S&P Global Ratings, Moody’s Investors Service, and FitchRatings reaffirmed the CDB’s rating as AA+ (Stable), Aa1 (Stable) and AA+ (Stable), respectively.