Praised by a Sustainable Debt Awards judge as an "important first [sustainability bond] issuance," for Corporación Andina de Fomento (CAF), the Latin America and Caribbean development bank issued its inaugural €1.5 billion ($1.74 billion) sustainable bond, mobilising capital for a slate of sustainable development projects across the region.

CAF states that the issuance underlines the bank's commitment to delivering innovative, efficient financing that advances climate resilience, social inclusion, and sustainable growth throughout its member countries.

The bond was issued in August 2025, shortly after CAF published its revised Sustainable Finance Framework, which broadened the scope of eligible assets to cover climate resilient infrastructure, blue economy initiatives, sustainable urban mobility, sustainable forestry and land use, circular economy initiatives and inclusive social programmes.

One Sustainable Debt Awards judge praised the issuance for presenting a "great range of projects." Another judge added that, "It is exciting to see CAF continue to widen its eligible project universe and investor base," noting that, "CAF continues to drive and scale capital in the region in which it operates."

The offering registered €14.9 billion ($17.2 billion) of investor demand, allowing CAF to upsize the issuance from €1 billion to €1.5 billion, making it the largest euro placement in the institution's history.

This transaction marks CAF's fourth benchmark bond in 2025, reinforcing its active presence in the European capital markets.