CAF sets up social bonds in euros

Latin American development bank CAF is holding calls with investors and setting up a benchmark-sized sale of social bonds denominated in euros, a source said.

The lender has hired Credit Agricole, BNP Paribas and Bank of America to lead a medium-term transaction next week, depending on market conditions, the source said. 

Manuel Valdez, head of debt capital markets funding and derivatives at CAF, the deal would be the development bank's first public offering of social bonds. 

CAF created the social bond framework to fund emergency financing programs for its member nations to deal with the coronavirus pandemic, Valdez said. It will use the proceeds to provide financing for healthcare spending and emergency economic support, he added.