CAF Corporación Andina de Fomento : With CAF's "water bonds", Japanese investors contribute to the development of Latin America

CAF, Development Bank of Latin America, carried out the third issue of bonds to finance exclusively water related projects. The placement consisted of 220.2 million Brazilian Reales at a three year term, for Japanese retail investors.

CAF, Development Bank of Latin America, jointly with Daiwa Securities Group, carried out the third placement of thematic bonds, specifically aimed at financing water projects. The papers, which were acquired in the Uridashi market by Japanese retail investors, have a three year term and were issued in Brazilian Reales for a total amount of BRL 220.2 million.

Enrique García, CAF's Executive President, stated, 'These types of thematic bonds are essential to promote the development of projects that improve the wellbeing of the population. Despite that Latin America has more than one third of the sweet water resources of the planet, it has the challenge of universalizing the supply of potable water, addressing the increase of demand resulting from the high urbanization rates and the improved standards of living of the population, in addition to the increase of diverse productive activities such as export agriculture and services linked to tourism'.

Support to the 19 member countries in the development of the water sector is one of CAF's priorities. Therefore, through financing and technical assistance, the institution disbursed USD 4.3 billion between 2012 and 2015, which represented 9 percent of its total approvals.

The funds collected through the water bonds, which in this operation reached BRL 220.2 million, will be allocated to diverse projects related to water, such as supply, sanitation, treatment of residual waters, and irrigation in Latin America and the Caribbean.

This type of CAF bonds allows Japanese investors to support the vision and strategy of achieving universal access to adequate potable water and sanitation services for people in Latin America and the Caribbean, following the principles of comprehensive management of water resources.