CAF opens 2011 with two successful bond issues

(Caracas, January 27, 2011).- CAF - Latin American development bank - began 2011 by reopening two issues, totaling over $480 million. The first was placement on the market of 130 million Swiss francs (approximately US$136 million) to join the original issue of November 2010, bringing the total to 330 million Swiss francs maturing in 2015. The reopening covers the excess demand for the previous issue. The underwriter was Credit Suisse.

The second was the successful placement of $250 million euros (approximately US$340 million) adding to last November’s issue on the European market, creating a benchmark bond of 650 million euros due in 2018. CAF rapidly executed the transaction while obtaining a lower price than that initially indicated to the market. Orders were received from 40 investors in 13 countries with the bulk of the demand coming from France, Britain, Switzerland and Germany. The lead banks were HSBC and BNP Paribas.

CAF President & CEO Enrique Garcia said the issue expanded the investor base in Europe and noted that its success in such a short execution time reflected the quality of the institution's credit, its good relations with investors, and the desire of markets to move into Latin America. "Without the high credit ratings that CAF enjoys, this successful market presence would not be possible. Once again, our financial strength is confirmed by the success of this new issue."

With the placement on the exclusive Swiss market, "CAF becomes the most frequent Latin American issuer in this market, and the only issuer with two simultaneous current transactions," Garcia added.

The participating banks said the successful and efficient issue confirmed CAF’s position as a "sound issuer with strong relations with investors." CAF has demonstrated its catalytic role in attracting funds into Latin America from industrialized countries to promote investment and trade opportunities in the region.

Reaffirming its presence on the most demanding capital markets, García announced that in 2010 CAF had doubled its public offerings with nine issues on the European, Japanese, Swiss, Uruguayan, Yankee markets, and the exclusive Uridashi retail market, for a total of over US$2.00 billion.

The institution’s credit ratings are among the highest of debt issuers in Latin America, recognition of its excellent financial indicators, solid legal structure and permanent commitment to shareholders.