CAF expands presence in Japan

(Caracas, June 14, 2007).- The Andean Development Corporation (CAF) today completed a successful bond issue in Japan for 30 billion yen, approximately US$245 million. The issue was in two series at three and seven years on the lowest margins ever obtained by the Corporation in this market. The placement agents were the Japanese Daiwa and Nomura banks.

The initial amount offered was 15 billion yen, but following the Corporation’s successful marketing, which included visits to major Japanese institutional investors, demand more than doubled the initial offering, and the size of the issue was increased to 30 billion yen. Numerous Japanese institutional investors subscribed to the issue, representing a varied range of sectors including insurance companies, asset managers, public institutions and, for the first time for a CAF issue, a broad group of regional banks.

CAF President & CEO Enrique Garcia, announcing the news, said that "the purpose of raising these funds is to finance important projects in line with the CAF mission of promoting the sustainable development and regional integration of its 17 shareholder countries, in both public and private sectors."

This is the Corporation’s sixth issue on the Samurai market since 1993 and the first public issue by a Latin American issuer in 2007 on this market. For the multilateral organization, its presence in Japan is an important part of its strategy of diversifying markets and investors, and reducing financing costs.

Including this issue, CAF has made four bond issues in 2007 for total amount of US$600 million, an overall total of 57 issues - on very competitive conditions - throughout its history.

The Japan Credit Rating Agency (JCR) recently upgraded the CAF prospect rating to positive. The institution currently has four ratings granted by the most prestigious international agencies: Fitch (A+), JCR (AA-), Moody’s Investor Service (A1), and Standard & Poor’s (A+).