Green Bond Fact Sheet

Issuer Name: CABEI

Date: 05/02/2020

Issue date: 15-11-2019 Maturity date: 15-11-2024 Tenor: 5Issuer NameCABEI (CentralAmerican Bank for
Economic Integration)

Amount Issued

USD375m

Country of risk

Supranational

CBI Database

Included

Issuer Type1

Development Bank

Bond TypeSr Unsecured

Green Bond Framework

Link to Framework

Second party opinion

Sustainalytics

Certification Standard

Not certified

Assurance report

N/A

Certification Verifier

N/AGreen bond rating

N/A☒ Energy☒ Solar☒ Onshore wind
☐ Offshore wind
☒ Geothermal☒ Hydro☐ Tidal☒ Biofuels☒ Bioenergy☐ District heating☒ Electricity grid

☐ Energy storage☐ Energy performance☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☐ Buildings☐ Certified Buildings☐ HVAC systems☐ Energyperformance☐ Water performance☐ Energy storage/meters☐ Other energy related☐ Industry: components☐ Adaptation & resilience☒ Transport☒ Electric vehicles☒ Low emissionvehicles☒ Bus rapid transit☒ Passenger trains☒ Urban rail

☐ Freight rolling stock☒ Coach / public bus☒ Bicycle infrastructure☐ Energy performance☐ Transport logistics☒ Infrastructure☐ Industry: components☐ Adaptation & resilience☒ Water & wastewater☒ Water distribution☒ Water treatment☒ Wastewatertreatment☐ Water storage☐ Storm water mgmt
☒ Flood protection☒ Desalinisation plants☐ Erosion control☐ Energy performance☒ Infrastructure☐ Industry: components☐ Adaptation & resilience

Use of Proceeds☐ Waste management☐ Recycling☐ Waste prevention☐ Pollution control☐ Landfill, energy capture☐ Energy performance☐ Infrastructure☐ Waste to energy☐ Industry: components☐ Adaptation & resilience☒ Land use & agriculture☐ Afforestation/parks☒ FSC Forestry☐ FSC Cellulose &paper☐ Land remediation☐ Energy/water efficiency☒ Sustainable agriculture☐ Adaptation & resilience☐ Other☐ Adaptation &resilience☐ ICT☐ Industry: process

Issue details
Reporting

CABEI intends to report on the allocation and impact of the use of proceeds on a yearly basis(for the duration of the green bond) on its website.

Company information

CABEI (Central American Bank for Economic Integration) is Central America’s multilateraldevelopment bank. Its resources are invested in projects that foster development to reducepoverty and inequality; strengthen regional integration and the competitive insertion of its
member countries in the global economy; providing special attention to environmental
sustainability. Its headquarters are in Tegucigalpa (Honduras) and it has regional offices inGuatemala, Honduras, El Salvador, Nicaragua, Costa Rica and Panama.

Firsts, records andcertificationsFirst supranational issuance from 2019 from the Latam region.

Proceeds description

Will finance projects that contribute to the transition to a low-carbon economy and havepositive environmental impact. The Framework defines eligibility criteria in four areas, withmultiple sub-categories possibly being financed in each:
1. Sustainable land use (namely forestry and agriculture)
2. Renewable energy (wind, solar, geothermal, bioenergy and hydro)
3. Sustainable water management (flood defences, water distribution and water treatment)
4. Clean transport (private transport – e.g. EVs, low-emission/hybrid vehicles – and public
transport – trains, no/low-emission buses – including infrastructure services)

Climate Bonds view

The Latam and particularly Central American green bond markets have lagged behind thoseof other regions in terms of issuance. However, the last year or so has been positive for theregion and we expect green investment to grow robustly in order to finance much-neededsustainable infrastructure as well as agriculture, ocean-based activities andadaptation/resilience.
CABEI’s green bond fits in with this trend and we are pleased to see the bank committed toscaling up sustainable projects in its member countries. Following a ‘thematic’ green
issuance in 2016 denominated in ZAR, CABEI’s recent bond has more structure around its
green credentials and we are eager to see what projects it will fund. It is also very positive
to see a deal from a large public sector organisation in Central America, which could help
boost and increase the visibility of the region’s market.

Underwriters
Deal comments
Credit Rating

Issuer rating: Standard & Poor’s (AA/stable outlook) and Moody’s (Aa3/stable outlook)1

Pricing summary

Interest spread: 85bps over 3M-LIBOR (2.37% fixed rate equivalent)

Investors summary“Demand was driven by Asian (75%) and European (25%) investors, including Banks,
SSAs/Central Banks, Asset Managers, Broker Dealers and Private Banks among others,
resulting in a well-diversified/high-quality transaction.”Issuer categories: ABS, development bank, financial corporate, government-backed entity, loan, local government, non-financial
corporate, sovereign