CAF grants US$250 million loan to Colombian company Bavaria
In one of the largest joint financing operations of recent years, the Andean Development Corporation (CAF) granted on August 14 an A/B loan for US$250 million to the Colombian company Bavaria S.A. to finance investment programs by the company and its subsidiaries.
The president of CAF, Enrique García, said the operation shows once again the success of the Corporation’s catalytic effort to attract external resources for channeling into its shareholder countries, especially their private sectors.
With Japanese financial institutions participating for the first time, García said that an important group of banks led by JP Morgan had taken 75% of the portion B of the credit, while the CAF was contributing the remaining 25%.
García added that CAF has approved A/B loans for US$460 million for Colombia, including the current operation, achieving co-financing structures with prestigious international financial institutions.
This loan shows the degree of strength and confidence generated by the CAF among international investors in times of financial strains in Latin America provoked by the difficult situation in Argentina.
The transaction was very well received by the syndicated loan market, as shown by the participation of 15 banks from Japan, Europe, the United States and Latin America, and the high level of over-subscription. The operation also marked the return of Colombian companies to the market which had been significantly limited for that country since 1999.
A first-rate combination
She said that international banks had heavily oversubscribed the loan for much more than the US$187.5 million required for portion B.
De la Puente said JP Morgan was very pleased to have successfully arranged a combination that offers the market the financial strength of Bavaria with the multilateral backing of the CAF.
CAF's more recent content
![CAF, JICA and Sicredi join forces to support women and rural producer CAF, JICA and Sicredi join forces to support women and rural producer](/media/4669796/foto_sicredi_divulgação_310724.jpg)
CAF, JICA and Sicredi join forces to support women and rural producer
The amount represents the largest international facility ever undertaken by Sicredi, with the involvement of four internationally renowned entities: Banco Finantia, BNP Paribas, Eco.business Fund, and Sumitomo Mitsui Banking Corporation (SMBC). The funds raised can also be used in regions with a Human Development Index below the national average.![CAF-FAO: Digitization project for agribusiness with repository launch CAF-FAO: Digitization project for agribusiness with repository launch](/media/4669830/caf-fao.png)
CAF-FAO: Digitization project for agribusiness with repository launch
The Food and Agriculture Organization of the United Nations (FAO), CAF -development bank of Latin America and the Caribbean-, the Ministry of Agriculture, Land and Fisheries and the Tobago House of Assembly celebrated the successful completion of the “Digitization and Innovation for the Competitiveness and Sustainability of the Agribusiness Sector in Trinidad and Tobago” project. The closing ceremony, that took place on the 29th of July, marked a significant milestone in the country's efforts to modernize and enhance the agricultural sector.![CAF recognizes Panama's water potential in the face of climate change CAF recognizes Panama's water potential in the face of climate change](/media/4669780/2_cuencas_hidro_caf_.jpg)