An unprecedented US$1 billion issue

(Caracas, May 28, 2009).- A “new milestone” is how the US$1 billion bond issue launched today on the US market by the Corporación Andina de Fomento (CAF) has been described. The multilateral agency’s rapid growth, combined with good reception on the part of investors, resulted in the biggest placement in its history.

Demand from numerous institutional investors in the United States, Europe, and Latin America tripled the amount offered. Also worthy of mention is the participation of new prestigious investors, which, throughout the operation, significantly increased the order book. The agents handling the issue were Credit Suisse and Bank of America Securities - Merrill Lynch.

“This level of placement indicates that CAF, even in this difficult environment of the financial crisis, has consolidated its position as a reliable issuer,” according to statements by its executive president, Enrique García, who pointed out, “this is the biggest issue in the Corporation’s history, for which there was a demand of approximately US$3 billion, with a high level of participation by new investors.”

García added that “this would not be possible without the financial solidity of the institution, reflected in the continuous growth of its equity, consistent improvement in its risk ratings, and the staunch commitment of its members, which allow it to steadily attract funds on competitive terms, so strengthening its catalytic and anti-cyclical role.”

As a financial intermediary, CAF attracts funds to Latin America to promote investment and business opportunities in the region. With these funds, it concentrates its action strategy on the socioeconomic development of its shareholder countries by financing operations that improve the competitiveness of their economic sectors, develop their economic and social infrastructure, support physical and border integration in the region, reduce poverty, promote small and medium business, strengthen national and regional financial markets, develop human capital, and foster the reform and modernization of the State.