CAF makes successful issue on Yankee market

(Caracas, July 7, 2011).- CAF - Latin American development bank - issued US$500 million on the Yankee market with the reopening of the bond due in 2016, increasing its amount to US$1.10 billion. The issue rate was 3.54%, the lowest yield obtained by CAF in that currency and at that term, representing a margin on US Treasury bills significantly lower than in the initial placement in 2010.

The amount originally announced for the reopening was US$400 million but, due to heavy demand, CAF was able to increase it while getting a reduction on the cost originally given as a guide to investors.

Enrique García, CAF president & CEO, said, "there was strong demand for the issue from high quality institutional investors, which tripled the amount initially offered." The investors were mainly from the United States, Europe, Asia and Latin America.

This bond is now established as the main benchmark of the CAF yield curve and is one of the highest in Latin America for that term. The agents for the operation were Credit Suisse and Goldman Sachs.

"CAF’s successful presence on international markets helps generate funds for its mission in favor of the sustainable development and integration of the region," García said.

The institution has issued a total of over US$3.20 billion in the last two years and approximately US$13.70 billion since 1993.

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

CAF's success in accessing international capital markets is mainly because it is the Latin American frequent issuer with the highest credit ratings, being recognized for its excellent financial indicators, solid legal structure and permanent commitment its shareholders.