CAF Issues Historic Jamaican Dollar Bond

The Development Bank of Latin America and the Caribbean (CAF) recently launched its first-ever bond in Jamaican dollars on the international capital market, marking a notable achievement for regional finance. The bond, valued at J$4 billion or approximately US$26.1 million, supports CAF’s goal of fostering the growth and resilience of local capital markets and currencies in its member countries.

This move follows the historic issuance of a Jamaican dollar bond on the international market last year, which was valued at J$46.6 billion or US$300 million. CAF regards these efforts as critical for promoting economic stability and growth throughout the region.

During a meeting with Jamaica’s Minister of Finance and Public Service, Dr. Nigel Clarke, CAF’s Executive President Sergio Diaz-Granados underscored the importance of the bond’s considerable size and its capacity to attract international investors to Jamaica’s capital markets.

Both Dr. Clarke and Diaz-Granados reiterated their commitment to enhancing their cooperative endeavors, which focus on financing, technical assistance, and knowledge sharing to improve the lives of Jamaican citizens and strengthen regional ties between the Caribbean and Latin America.

The Jamaican Ministry of Finance recognized the strategic value of this issuance in diversifying the national debt portfolio and reducing dependence on debts denominated in US dollars. By opening local currency bonds to international investors, Jamaica seeks to lessen the risks tied to currency exchange fluctuations, thereby aiming for greater financial steadiness and resilience.

This bond issue highlights CAF’s commitment to advancing sustainable development and economic integration across Latin America and the Caribbean. As the financial environment evolves, such initiatives are increasingly vital for bolstering the region’s economic health and resilience.