CDB issues bond in Swiss market
The Caribbean Development Bank (CDB) has issued a bond in the Swiss market, where it raised CHF145 million.
The bond, with a final coupon rate of 0.297 per cent, matures in 12 years. The placement arranged by Credit Suisse happened three weeks ago on June 15 but was just announced by the development bank this week.
"The decision to enter into the Swiss market allows CDB the opportunity to diversify its investor base away from traditional sources," said CDB president, Dr Warren Smith, in a statement.
"The bond offering was oversubscribed in a very short period of time, demonstrating that there is a strong investor confidence in CDB, even in light of the less-than-optimal market conditions, including volatility due to Brexit concerns," he said.
The bond placement followed a roadshow in Geneva and Zurich.
"Due to the strong interest shown, the order book was three times oversubscribed in 15 minutes," the regional financial institution noted.
CDB said the offer marks the first time that a borrower from the Caribbean region has accessed the Swiss franc market successfully.
The bank last raised funds internationally on the US capital market in 2012 via placement of a US$300 million 15-year bond.