Latin American and Caribbean international bond issuance totalled US$ 161 billion in the first nine months of 2025, 32% higher than the full-year total for 2024 and the highest amount on record. The average coupon rate of 6.6%, compared with 7.1% in 2024, points to easing external financing costs. The market remained open to high-yield issuers, though investment-grade borrowers accounted for 64% of total issuance.

While overall issuance reached new highs, green, social, sustainability and sustainability-linked (GSSS) bond issuance moved in the opposite direction. The region issued US$ 14.05 billion in GSSS bonds, down 54.5% year-on-year. This decline was partly driven by the sovereign sector, whose share fell to 12.5% after representing more than half of total regional GSSS issuance over the past five years.

The combination of record issuance volumes, tighter spreads and strong equity market performance underscored renewed confidence in 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 and latest trends in international bond issuance, credit ratings, bond spreads and equity prices.