Latham & Watkins Advises Latin American Development Bank CAF in Landmark Offerings

Latham & Watkins represented CAF — Development Bank of Latin America and the Caribbean in two debut bond issuances.

Latham advised CAF in its inaugural issuance of US$500 million in hybrid capital notes, the first multilateral financial institution in Latin America to integrate hybrid capital into its financing strategy. The instrument is recognized as 100% equity by major rating agencies, thereby increasing CAF’s lending capacity by up to approximately four times the issued amount. Orders surpassed US$3.2 billion from over 200 institutional investors worldwide, according to CAF.

Latham also counseled CAF in the issuance of its first-ever Blue Bond, raising €100 million to support sustainable and climate-resilient coastal development across Latin America and the Caribbean. The milestone transaction was developed in collaboration with the United Nations Development Programme, which served as technical advisor, leveraging its expertise in the United Nations Sustainable Development Goals and thematic debt to enhance strategic partnerships with Multilateral Development Banks.

CAF is a multilateral financial institution that seeks to promote economic development within Latin America and the Caribbean. Its principal and associated shareholders include 21 sovereign nations across Latin America and the Caribbean, together with Spain and Portugal.

Latham & Watkins’ cross-border team in these transactions was led by partners Basil Al-Jafari and Roderick Branch, with associates Lois Pickering, Concepción Olivera, and Wyatt Wisnosky.