CAF places largest non-government issue in Peru

Successful first placement in new soles

(Caracas, May 25, 2006).- CAF placed a bond issue on May 25 through a public offering for 248 million soles (about US$75 million), the Corporation’s first bond issue in new Peruvian soles. The initial public offering of 200 million soles was increased following heavy demand. The bonds, maturing in 2018, were issued under the 500-million soles Program that CAF has registered on the Peruvian market.

CAF President & CEO Enrique García said he was pleased with the support that CAF received from the government and financial authorities, as well as from Peruvian institutional investors which were amply represented in the award. “This bond issue is the largest by an issuer other than the Government on the local market, which clearly shows the confidence of the investors in the institution."

The CAF issue will help the development of the Peruvian capital market by offering a diversification alternative for investors. The funds from this placement will be used for general CAF operations, whose main purpose is to promote the economic and social development of Latin America.

In 2003, as part of its strategy of contributing to the development of regional capital markets, CAF issued its first Condor bonds in Peru targeted at Peruvian and other Andean institutional investors. A second placement was made in 2005. Both operations were in US dollars.

The structuring and placement agent for this issue was BBVA Banco Continental, while Credit Suisse acted as adviser.