CAF placed bonds for USD 1.25 billion

CAF - development bank of Latin America issued today a "benchmark"-sized bond in the United States, with a term of 3 years for a total USD 1.5 billion. Invertors' appetites for the institution's debt instruments saw itself reflected in more than 100 orders for over USD 2.2 billion, almost double the offer. 

The bond's high demand allowed for a reduction in the interest rate by 15 basic points with respect to what was originally forecasted, which resulted in the interest rate finally settling at 2%.

"We're glad to verify the increased confidence and interest of investors in CAF bonds to drive the sustainable development of Latin America through the financing of projects. Our committment to obtaining competitive sources of finance and to diversifying the markets in which we participate, as are seen in this bond issuance, is a good sign for the 19 countries who are shareholders of this institution," stated Enrique García, executive president of CAF.  

Central banks and public institutions represented almost 40% of the orders received, followed by fund managers, banks and insurance agencies.

This issuance becomes the highest one carried out up to the moment by CAF in 2016 and is added to the 14 issuances carried out in the first five months of the year in markets in Switzerland, Europe, Japan and Hong Kong.