CDB launches first bond offering on Swiss market

The Caribbean Development Bank (CDB) has announced the launch of its first ever bond offering in the Swiss franc market, marking the first time a Caribbean borrower has ever successfully accessed that market.

The offering comes following the affirmation of the Bank's rating at 'AA/A-1+' with a stable outlook earlier this year by S&P Global Ratings.

The bond, facilitated by Credit Suisse, is a 12-year offering for 145mn Swiss francs (US$148mn), carrying the lowest coupon rate, 0.297%, achieved by an international public sector issuer at a maturity greater than 10 years in the Swiss franc market.

Meetings between investors and a delegation of senior CDB officials were convened in Geneva and Zurich, which let to positive investor feedback and immediate execution of the transaction.

CDB says the order book for the offering was three times oversubscribed within just 15 minutes, and over 60 accounts participated, including asset managers and banks, as well as pension funds and insurance companies.

"The decision to enter into the Swiss market allows CDB the opportunity to diversify its investor base away from traditional sources. The bond offering was oversubscribed in a very short period of time, demonstrating that there is strong investor confidence in CDB, even in light of the less than optimal market conditions, including volatility due to Brexit concerns," said Warren Smith, president of CDB, in a statement on the bank's website.

CDB's most recent bond issue prior to this one was in 2012, when the bank raised US$300mn through the placement of a 15-year bond on US capital markets.