Latin American and Caribbean international bond issuance totalled US$ 187 billion in 2025, 54% higher than in 2024, marking the highest level on record. The average coupon rate of 6.6%, compared with 7.1% in 2024, indicates easing external financing costs. Markets remained open to high-yield issuers, though investment-grade borrowers accounted for 60% of total issuance.

Notwithstanding the strong expansion in overall issuance, green, social, sustainability and sustainability-linked (GSSS) bond issuance contracted by 47% in 2025. This decline was driven partly by the sovereign sector, whose share fell to 22%, from more than half of total regional GSSS issuance over the previous five years.

The combination of record issuance volumes, tighter spreads and strong equity market performance underscored renewed confidence and resilient risk appetite for the region’s assets.

Capital Flows to Latin America and the Caribbean reports are published twice a year and provide an overview of the region’s financial conditions, including trends in international bond issuance, credit ratings, bond spreads and equity prices.