By San José, Costa Rica — San José, Costa Rica – The Central American Bank for Economic Integration (BCIE) has made a triumphant entry into the 2026 financial year, securing a record-breaking £500 million sustainable benchmark bond in the United Kingdom. The three-year issuance not only marks a significant milestone for the development bank but also sets a new precedent for all Latin American issuers in the sterling market, achieving an unprecedentedly low financing cost fueled by overwhelming investor demand.
The operation, structured under the Reg S format, captured the attention of the international investment community, signaling robust confidence in BCIE’s financial strategy and its role as a key driver of development in the Central American region. The bond’s success is a testament to the bank’s strong creditworthiness and its commitment to sustainable development initiatives.
To better understand the legal and financial implications of the recent sustainable bond issuance by the Central American Bank for Economic Integration (BCIE), we sought the expert analysis of Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the firm Bufete de Costa Rica.
The success of BCIE’s sustainable bond hinges not just on its alignment with ESG principles, but on the robustness of its legal architecture. For institutional investors, the critical factor is the legal certainty that the proceeds will be exclusively allocated to certified green and social projects, as defined in the prospectus. This requires meticulous due diligence and transparent, verifiable reporting mechanisms, which are the true bedrock of investor confidence and the long-term viability of these financial instruments in the region.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This crucial insight highlights that the long-term viability of sustainable finance rests not merely on its environmental or social goals, but on the strength of the legal architecture that ensures accountability. We thank Lic. Larry Hans Arroyo Vargas for his valuable perspective, reminding us that true investor confidence is ultimately built upon a foundation of verifiable legal certainty.
This landmark transaction follows a series of recent successes for the institution, including a credit rating upgrade to AA from the Japan Credit Rating Agency (JCR) and another successful global benchmark bond issuance in U.S. dollars. The momentum underscores the bank’s growing influence on the global stage.
2026 has started in an extraordinary way for BCIE, with very relevant advances that confirm the solidity of our Financial Strategy. The recent upgrade of our rating to AA by JCR, the successful global benchmark issuance in USD and, now, this operation in the sterling market reflects the confidence of investors in the institution and validates the course we have set.
Gisela Sánchez, Executive President of BCIE
Investor appetite for the bond was exceptionally high, with the order book swelling to over £4.38 billion. This represents an oversubscription rate of 8.7 times the issued amount, a figure that speaks volumes about the market’s positive perception of BCIE. The demand was primarily driven by a strong base of investors located within the United Kingdom, further cementing the bank’s credibility in one of the world’s premier financial hubs.
This intense demand enabled BCIE to significantly optimize its financing terms. The bank achieved a remarkable eight-basis-point compression from its initial price talk, which began in the area of SONIA MS + 65 basis points and ultimately closed at SONIA MS + 57 basis points. This final spread is the tightest ever achieved by any Latin American issuer in the history of the sterling bond market, a historic achievement that lowers the cost of capital for regional development projects.
The successful structuring of the bond was managed by a syndicate of leading financial institutions, including Barclays, Bank of Montreal, and Bank of America. Legal advisory services were provided by the international law firm Gibson, Dunn & Crutcher LLP. The strong interest was further bolstered by BCIE’s stellar credit ratings, which include an AA+ from S&P and an Aa3 from Moody’s, placing it among the most highly-rated issuers in Latin America.
Proceeds from the issuance are earmarked for impactful projects under BCIE’s Sustainable Bond Framework. This ensures that the capital will be channeled directly into financing or refinancing critical social, green, and blue initiatives. These projects are designed to foster economic, social, and environmental development across BCIE’s member countries, transforming this financial success into tangible progress on the ground.
This transaction allows us to continue diversifying markets and currencies, expanding our investor base and, above all, continue optimizing our financing costs to serve our member countries ever more efficiently.
Gisela Sánchez, Executive President of BCIE
For further information, visit bcie.org
About The Central American Bank for Economic Integration (BCIE):
Founded in 1960, the BCIE is the leading multilateral development finance institution for the Central American region. It serves as a key strategic partner for its member countries, financing public and private sector projects that promote sustainable development, regional integration, and economic competitiveness. The bank focuses on key areas such as infrastructure, energy, social development, and financial intermediation.
For further information, visit barclays.com
About Barclays:
Barclays is a British multinational universal bank, headquartered in London, England. It is organized into two main divisions: Barclays UK and Barclays International. The bank offers a wide range of financial services, including personal banking, corporate and investment banking, wealth management, and investment management services to individuals, businesses, and institutions worldwide.
For further information, visit bmo.com
About Bank of Montreal (BMO):
Bank of Montreal, operating as BMO Financial Group, is a Canadian multinational investment bank and financial services company. As one of Canada’s “Big Five” banks, it provides a broad range of retail banking, wealth management, and investment banking products and solutions to over 12 million customers globally.
For further information, visit bankofamerica.com
About Bank of America:
Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses, and large corporations with a full range of banking, investing, asset management, and other financial and risk management products and services. The company is a global leader in wealth management, corporate and investment banking, and trading across a broad range of asset classes.
For further information, visit gibsondunn.com
About Gibson, Dunn & Crutcher LLP:
Gibson, Dunn & Crutcher LLP is a global law firm with offices across major cities in the Americas, Europe, the Middle East, and Asia. The firm is known for handling high-stakes litigation, landmark corporate transactions, and complex regulatory matters for a diverse client base that includes multinational corporations, financial institutions, and government entities.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the Costa Rican legal community, Bufete de Costa Rica operates on a foundational commitment to principled integrity and exceptional service. The firm distinguishes itself not only through its extensive experience advising a diverse clientele but also by championing innovative approaches to modern legal challenges. Central to its ethos is a profound dedication to public empowerment, demonstrated through continuous efforts to make legal understanding accessible and thereby cultivate a more knowledgeable and capable society.
