Successful placement of ¥ 25 billion in Samurai bonds

The Andean Development Corporation (CAF) today placed a bond issue for ¥ 25 billion over five years at a rate of 1.17% on the Japanese Samurai bond market. This issue was the fourth by the CAF in that market. This successful and well-timed placement was led by the Japanese investment banks Daiwa Securities SMBC and Nomura Securities with the participation of other Japanese, U.S. and European banks.

According to the executive president of the CAF, Enrique García, " the great acceptance of this issue by Japanese investors confirms once more the Corporation’s financial strength." García added that "this operation reaffirms the long-term strategy we have designed for the institution, which is to have a constant presence on the most important international financial markets. In January this year we placed our first global bond and we are now following with this new issue in Japan."

Enrique García said the Corporation’s current risk ratings are the highest in Latin America and are very attractive for investors around the world. With ratings of "A" from Standard & Poor's, "A2" from Moody's and "A" from Fitch, the multilateral institution obtained highly competitive terms for this issue.

The multilateral financial institution places bonds on international markets to finance important projects in line with its mission to support the integration and productive expansion of the public and private sectors in its 12 member countries.

The Corporation's financial strategy is based on diversification and expansion of sources of funds and reduction of costs on international financial markets. The multilateral lender is recognized as the most competitive Latin American issuer on the rates and terms of its placements. Through its permanent presence on the most demanding world markets since 1993, the CAF has accumulated placements of over US$4.5 billion.