CAF places its first bond issue in Japan

(April 1990).- For the first time in its 20 years of its existence, CAF placed bonds on the international capital market with a US$15 million issue in Japan. CAF now has untied funds from that country for its loans in favor of Bolivia, Colombia, Ecuador, Peru and Venezuela.

CAF President & CEO Galo Montaño said by telephone that the commitment was signed Thursday in New York with executives of Citicorp International of Tokyo, Kawasaki Leasing, Kyodo Leasing and Chase Manhattan Bank, institutions which are participating in this issue and its placement on the Japanese financial market.

Montaño said the operation was of extraordinary importance. "The important aspect is not the amount of this first issue but the fact that we have succeeded in placing our bonds on the Japanese market. All our efforts over three years to obtain a rating as one of the financial institutions whose securities are listed and accepted on the international market are now beginning to bear fruit."

"The bonds have a three-year term with floating interest of Libor+1%. The funds will be fully usable within the next few days. This new demonstration of the international financial world’s confidence in CAF gives us great satisfaction and opens extraordinary prospects for placing new bond issues in the near future on European and North American countries. With these funds, CAF will be able to expand its loans to Andean countries for local expenses, not only for imports from certain countries. With these freely usable funds, CAF will expand its service to its member countries, contributing to overcoming problems caused by the world economic situation."