BRIDGETOWN, Barbados – The Caribbean Development Bank (CDB) said on Wednesday it has raised 100 million Swiss francs (US $110 million) in a five-year sustainable bond, its first such issuance under a new framework designed to fund environmental and social projects.

The bond, which carries a fixed coupon of 0.59 per cent, saw strong demand that allowed the bank to price the deal at the top of its initial guidance, CDB said in a statement. The order book closed within 90 minutes of opening.

Proceeds will be allocated to projects in the bank’s borrowing member countries, in areas including renewable energy, climate adaptation, sustainable water management and food security, in accordance with the bank’s Sustainable Finance Framework.

The investor base was composed mainly of treasury departments, which took 62 per cent  of the deal. Asset managers accounted for 17 per cent, private banks for 11per cent, with pension plans and insurance companies each taking 5 per cent.

The Aa1/AA+/AA+-rated bank said the transaction strengthens its yield curve and demonstrates its commitment to integrating sustainability into its operations.

CDB, established in 1970, has 19 borrowing members in the Caribbean and nine non-borrowing members, including Brazil, Canada, China, and the United Kingdom. Its total assets stood at US$2.02 billion as of December, 2024.