Against a backdrop of tightening global financing conditions and higher global borrowing costs, Latin American and Caribbean issuers placed US$ 58.5 billion in bonds on international markets from January to October 2022, around 60% less than in the same period of 2021, with an average coupon almost 1.5% higher. The region’s international issuance of environmental, social and governance (ESG) bonds followed the broader market downturn in bond activity, particularly in the corporate sector, owing to worse macroeconomic conditions; however, it showed some resilience, slowing less markedly than overall issuance. The share of these bonds in the region’s total issuance increased to 34.5%, from 31% in the year-earlier period.
Capital flows to Latin America and the Caribbean: a slowdown in 2022 analyses the main trends and developments in capital flows to Latin America and the Caribbean from January to October 2022. This report is published three times a year and provides an overview of Latin American and Caribbean issuers’ new international bonds —including green, social, sustainability and sustainability linked bonds— bond spreads and credit ratings.