CAF places bonds for ¥12 billion

(Caracas, February 22, 1995).-- As part of its "Medium Term Note Program," CAF successfully placed bonds for 12 billion euro-yens (US$120 million) for Japanese private investors.

The launch of these bonds in London today has special importance because it is the first Latin American issue after the Mexican crisis, said CAF President & CEO Enrique García. "It contributes to reestablishing the confidence of capital markets in the countries of Latin America, over and above short-term situations."

At the end of last year, three international risk-rating agencies - Standard & Poor's, Moody’s and IBCA - confirmed the investment-grade rating granted previously to CAF, which reaffirmed the institution as the most successful Latin American issuer. Since April 1993, date of the first issue on the market, CAF has placed US$820 million in instruments on the most world’s most demanding capital markets, such as the Samurai of Japan, the Dragon of Southeast Asia, and the US commercial paper market (USCP).

CAF - financial institution formed by Bolivia, Colombia, Ecuador, Peru and Venezuela -ended the last operating year with a record figure of US$2.16 billion in approvals of operations. With assets over US$2.25 billion, CAF also has Mexico, Chile, Trinidad and Tobago and 22 private banks from the Andean region among its shareholders.

The funds generated by the CAF bonds will be used to finance productive activities in the Andean region, which, with the annual contributions of member countries and the lines of credit from other multilateral organizations, constitute the financial working basis of the Corporation.

This bond issue in euro-yen, with a 3 1/2 year term, was led by Nikko Europe plc.