Capital flows to Latin America and the Caribbean: 2024 year-in-review and early 2025 developments

Latin American and Caribbean bond issuance in international markets amounted to US$ 121.8 billion in 2024, 36% higher than in 2023 and the strongest figure in three years. The average coupon rate, at 7.1%, was slightly above the 2023 level of 6.9%, indicating that financing costs remain elevated. Although the market was still open to high-yield issuers, investment grade bonds accounted for 57% of the region’s issuance. In 2024, issuance of green, social, sustainability and sustainability-linked (GSSS) bonds on international markets climbed by 6% relative to 2023, to a total of US$ 33.1 billion. Although this was the largest volume recorded since 2021, these bonds represented 27% of the total for the region in 2024, significantly lower than the record 35% share in 2023. In the first quarter of 2025, despite increased uncertainty, Latin American and Caribbean bonds were issued in international markets at a rapid pace, reflecting a quarterly record of US$ 52.2 billion and surpassing the previous peak reached in the first quarter of 2021. 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 bonds issued in international markets, credit ratings, bond spreads and equity prices.