Long-term issue in Mexico

(Special, October 26, 2011) .- CAF - Latin American development bank - announced placement of approximately 1.3 billion Mexican pesos (US$100 million) with a 10-year term and a fixed coupon of 3.95% denominated in UDIs.

The transaction was in demand from institutional investors, mainly afores, pension funds and treasuries, among others. Heavy demand - 1.7 times more than the target amount of the issue of 1 billion pesos - led to an increase in the placement amount and a cut in the rate initially offered to the market. The operation was led by BBVA Bancomer with Intercam Casa de Bolsa as co-leader.

"This is the third issue we have placed in Mexico, a market we first entered in 2007," Enrique García, CAF president & CEO, said. "This time it is the longest-term issue made by a multilateral in this market since 2008, and the largest by the institution in Mexico which shows that investors have an interest and confidence in CAF."

The financial strength shown over the years, based on support from shareholders, prudence in  managing credit policies and independence, has positioned CAF as the frequent Latin American issuer with the best risk ratings.

Since 1993, CAF has made 87 bond issues for approximately US$14 billion on major international capital markets, including the United States, Europe, Asia and various Latin American countries.