CAF completed successful bond issue in Yankee market

(Caracas, July 7, 2011).- CAF—development bank of Latin America—issued USD 500 million in the Yankee market during the reopening of the 2016 bond, thus raising its amount to USD 1.1 billion. The bond was issue at a 3.54% rate, the lowest yield obtained by CAF in that currency and representing at the time a margin on the US treasury significantly lower than that in the initial 2010 placement.

The amount originally announced for this reopening was USD 400 million, but due to substantial demand, CAF managed to raise it while achieving a reduction of the cost originally indicated to investors as a guideline.

In this regard, CAF executive president Enrique García said: “The issue attracted strong demand from high-quality institutional investors, which tripled the amount initially offered,” and noted that it was purchased by investors from the United States, Europe, Asia and Latin America.

Noteworthy is that this bond is now the main benchmark of CAF’s financing curve and is one of the largest issues in Latin America with such a yield. The agents in charge of the transaction included Credit Suisse and Goldman Sachs.

“CAF’s successful presence in international markets helps secure funds to carry out its mission of underpinning sustainable development and integration in the region,” García added.

The Institution has issued an amount in the excess of USD 3.2 billion over the last two years, and approximately USD 13.7 billion since 1993.

CAF provides multiple financial services with high added value for both the public and private sectors in the form of loans, guarantees and sureties, financial advice and investment banking, treasury services, equity shares and technical cooperation, among others.

CAF’s success in the access to international capital markets is mainly due to the fact that it is the Latin American frequent issuer with the best credit ratings, in recognition of its excellent financial indicators, solid legal structure and the permanent commitment of its shareholder countries.