CAF kick-starts the year with a successful bond issue for $250 million

(Caracas, January 23, 2007).- CAF reopened its 2017 dollar-denominated bond, issued last September in the Yankee market, raising an additional $250 million. CAF’s bond reopening found strong demand and the final amount was almost triple what was initially announced. The leading bank was Merril Lynch.

CAF’s Executive President and CEO, Enrique Garcia, stated “we started the year with this successful reopening for $250 million, which marks the beginning of CAF’s presence in the most important international capital markets during 2007”. CAF is recognized as among the most competitive Latin-American issuers, with respect to the rates and tenor attained in their bond placements. Garcia pointed out that the Institution has placed 54 bond issues to date, since 1993.

During 2006, CAF placed four issues for a total of $809.5 million. It placed a $250 million bond in the Yankee market in September –which was target of the reopening– and a €300 million bond in the European market in November. In addition, it is worth noting that during that year CAF continued to participate in local capital markets. Such activity included the placement of the first bond issue (since 1976) from a multilateral financial institution in the country of Venezuela, for $100 million, in local currency, as well as CAF’s first bond issue in local currency in the Peruvian market for $75 million. Both issues constitute the largest to date in those countries by a single non-governmental issuer.

CAF has been granted investment-grade ratings from four of the most prestigious credit rating agencies, which have confirmed the Corporation’s status as the best rated frequent issuer in Latin America: Moody’s (A1), Standard & Poor’s (A), Fitch Ratings (A+) and JCR (AA-). The Institution’s increasing capitalization, its ongoing profitability and efficient financial management, its political independence, as well as the immunities and privileges granted by its international legal status, have been the factors determining the recognition of the multilateral institution’s credit quality on behalf of the agencies.

CAF’s financial strategy is based on the diversification and broadening of funding sources, as well as cost reduction, in the international financial markets. Funds raised in the international capital markets through bond issues are used to finance important projects aligned with CAF´s mission to support integration and productive growth of the public and private sectors of its 17 member countries.