CAF carries out a successful issue for EUR 750 million
More than 150 investors participated, including fund administrators, central banks, and official institutions. The issue is supported by the improvement in the Institution's rating to the "AA" category.
The large demand that unexpectedly occurred after the announcement made by CAF, Development Bank of Latin America, about issuing in the European market, lead the Institution to carry out a placement of EUR 750 million (approximately USD 1 billion), thus increasing the initial offer.
The seven year issue, at a rate of 1.875 percent, shows CAF's increasingly strong ties with the base of European investors. Enrique Garcia, CAF's Executive President, stated that "in one hour, the strong demand doubled the order book", adding that the transaction is the largest in size, with the lowest coupon, carried out by the Latin American Organization in this market.
This public placement follows a series of successful issues in different currencies and formats that add up to approximately USD 2.5 billion during this year.
CAF's Executive President stated that "for more than 20 years we have had a significant presence in international capital markets with a financing strategy aimed toward investors, offering flexibility with respect to maturities, and attractive returns with respect to risk".
The Institution's activity in the market has consisted mainly of bond issues in the most important markets in America, Europe, and Oceania.
The high quality of the order book should be noted, with the participation of traditional investors from supra-national institutions, including central banks, agencies, and sovereign funds. The bond's performance after its placement has also been quite positive in the secondary market. The banks that placed the issue were BBVA, Credit Agricole, Credit Suisse, Deutsche Bank and HSBC.
The resources received allow CAF, through its issue program, to expand the financing facilities for Latin America, thus providing a greater boost to its comprehensive development agenda.
The Institution is among the Latin American debt issuers with the highest ratings, where its excellent financial indicators, the solid legal structure, and the permanent commitment of its shareholder countries are recognized.
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