Germans snatch CDB bonds

The Barbados-based Caribbean Development Bank (CDB) has secured BDS$300 million in the German capital market.

In a recent statement from the financial institution, CDC disclosed that it had successfully executed its second borrowing in that European market through the issuance of a US$100 million 20-year registered bond and a US$50 million 22-year registered bond.

Commenting on the bonds issue by the A-rated regional institution, its President Dr Gene Leon said: “The bond issuance on the German capital market allows CDB to further strengthen the diversification of its investor base away from traditional sources.

“On highly attractive terms, our Borrowing Member Countries will be able to access these resources to build resilience and support sustainable development initiatives for the overall benefit of Caribbean citizens.”

According to the CDB, the bonds were offered on the German market on October 15 by Deutsche Bank AG, acting as sole book runner.

Favourable market conditions and a strong appetite for CDB’s paper enabled the bank to raise 20-year funds at an annual interest rate of 2.55 per cent and 22-year funds at an annual interest rate of 2.50 per cent.

The US$50-million bond issuance represents the CDB’s longest-dated borrowing.

This most recent raising allows for the build-out of a yield curve for CDB debt securities and the bank said it regarded this as testament to the Bank’s financial and operational strength, and its appeal amongst global fixed-income investors.

Prior to this transaction, CDB reported that it had raised EUR250 million through the placement of a 20-year bond in the German market in 2019 and CHF145 million through the placement of a 12-year bond in the Swiss market in 2016. (IMC1)