CAF places largest bond issue in Peru

CAF placed on May 25th, through public offering, a bond issue for an amount equal to PEN 248 million (approximately USD 75 million), becoming its first bond in Peruvian local currency. Initially, the offer was made for PEN 200 million but, due to large demand, was later increased. The bonds, with maturity in 2018, were issued under a PEN 500 million issuance program that CAF registered in Peru.

CAF’s Executive President, Enrique García, underscored the support CAF received from the local government and financial authorities, as well as local institutional investors, who were well represented in the final sale of the bonds. “This bond issue was the largest that a non-governmental issuer has placed in this country’s local market, which clearly demonstrates the investors’ confidence in our institution”.

This issue will support the development of the Peruvian capital markets by offering a diversification alternative to investors. Moreover, the funds will be directed to finance CAF’s lending activities, which are aimed at promoting the economic and social development of Latin America.

Previously, in 2003, and following its strategy to develop regional capital markets, CAF registered in Peru its first “Condor” bond intended for Peruvian institutional investors, as well as those from the rest of the Andean Region. Later on, a second issue was placed in 2005. Both were in US dollars.

The arranger and dealer for this issue was BBVA Banco Continental and Credit Suisse was the issuer’s transaction advisor.