Latin American and Caribbean international bond activity in the first ten months of 2023 rebounded from the 2022 lows.

1. Latin American and Caribbean bond issuers placed US$ 76.4 billion of bonds in international markets in the first ten months of 2023. Adding the first half of November, total LAC international bond issuance is US$ 84.2 billion, 32% higher than the annual 2022 issuance (figure 1).

2. The region issued US$ 23.2 billion of international green, social, sustainability and sustainability‑linked (GSSS) bonds in the first ten months of 2023. Including the first half of November, the region’s total international GSSS bond issuance was US$ 29.6 billion, representing a record 35% share of the total.

3. The larger role national governments are playing in the region’s sustainable issuance has been a major trend in the past five years. The sovereign sector accounted for 73% of the region’s total international GSSS bond issuance in 2023 year-to-date, as of 15 November (figure 3).

4. The region’s sovereign credit quality has improved in 2023 year-to date, supported by lower funding needs and greater reliance on local markets. There were twenty‑four positive and fourteen negative credit rating actions from 1 January to 15 November 2023. The net balance year-to-date of ten more positive actions than negative is the best since 2011 (figure 4).

5. Better credit quality has contributed to keep bond spreads moderate. LAC bond spreads tightened 2 basis points in the first ten months of 2023. As measured by the JPMorgan EMBIG, LAC bond spreads stood at 438 basis points at the end of October 2023, 66 basis points higher than pre-pandemic levels (figure 5).

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