Latin American and Caribbean bond activity in international markets recovered strongly towards the end of the first half of 2023, with a total of US$ 50 billion placed in the period. This figure was 9% higher than in the year-earlier period and 158% higher than in the second half of 2022. Decelerating inflation and currency appreciation supported the upturn in bond activity, as did the pause in increases in the benchmark interest rate decided by the United States Federal Reserve at its meeting on 13 and 14 June following 10 consecutive hikes. There was a flurry of new bond issuances in the last two weeks of June that continued in July.
The region’s issuance of green, social, sustainability and sustainability-linked bonds in international markets followed the broader market trend, with 60% of such bonds issued in May and June. These bonds totalled US$ 16.6 billion in the first half of 2023, up 14% from the first half of 2022 and 180% from the second half, representing a record 33.5% of the total amount issued in international markets in the period.
Capital Flows to Latin America and the Caribbean: first half of 2023 presents and analyses the main trends and developments concerning capital flows to Latin America and the Caribbean in the first six months of the year. This report is published by ECLAC three times a year and provides an overview of the region’s new international bond issuances, bond spreads and credit ratings.