CAF Returns to "Kangaroo" Market with AUD225 Million Bond Issue
The Latin American financial institution placed 10-year bonds in the prestigious Australian market
(Caracas, Nov. 1, 2013).-In August of 2013 CAF-development bank of Latin America-became the first Latin American issuer of bonds in the Australian market. Two months later, the bank placed a new issue at AUD225 million (approximately USD213 million), one of the largest 10-year issuers in the Australian market. Financial institutions Deutsche Bank and Westpac handled the deal.
The newest transaction, originally planned as a AUD100 million issue, grew to USD225 million due to heavy demand, more than twice initial estimates. The issues brings the total of CAF's placement in the Australian market to AUD575 million.
The "Kangaroo" market is one of the most exclusive in the world and only allows high-quality bond issuers. This transaction strengthens CAF's positioning alongside other international issuers boasting strong presence in the market.
"The operation marks CAF's strategy to diversify funding in international markets, attract resources for Latin America as well as bring about financing conditions that favor regional development," said CAF Executive President Enrique García, who highlighted that more 30 investors in Australia, Asia and Europe subscribed to the new issue.
The institution has carried out a total of 14 bond issues in 2013, raising more than USD2.3 billion alongside a very select group of issuers.
CAF is among Latin America's top-rated bond issuers. Over the years, CAF has received 13 rating upgrades from the major agencies (Fitch, Japan Credit Rating Agency, Moody's Investors Service and Standard & Poor's). CAF debt currently carries an "AA" rating.
CAF's more recent content
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
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.