Bond issue for US$75 million opens new investment alternatives in the Andean region

The Andean Development Corporation (CAF) made the first international issue of Andean bonds through a placement for US$75 million at three years at the LIBOR rate plus 7/8, the executive president of this multilateral financial institution, Enrique García, announced.

The operation constitutes a new product known as the Condor Bond which the CAF is developing to stimulate the creation of investment alternatives in the region, and satisfy the demand from public and private financial institutions, including mutual funds, pension funds and insurance companies. The operation - also known as Floating Rate Note - was originally planned for an amount of US$50 million but following heavy demand from the market the amount was raised to US$75 million and BBVA was contracted as lead bank.

For the operation, the CAF entered its own region to raise funds, which will later be used by the Andean countries themselves. This issue is the successful outcome of a varied strategy expressed in the diversification of sources and terms, combined with the maintenance of an adequate matching of the maturities of assets and liabilities.

The CAF is a prestigious issuer on U.S., Japanese, European, and now Latin American markets, and has an outstanding presence on short-term capital markets.