CAF Returns to "Kangaroo" Market with AUD225 Million Bond Issue

(Caracas, Nov. 1, 2013).-In August of 2013 CAF-development bank of Latin America-became the first Latin American issuer of bonds in the Australian market. Two months later, the bank placed a new issue at AUD225 million (approximately USD213 million), one of the largest 10-year issuers in the Australian market. Financial institutions Deutsche Bank and Westpac handled the deal.         

The newest transaction, originally planned as a AUD100 million issue, grew to USD225 million due to heavy demand, more than twice initial estimates. The issues brings the total of CAF's placement in the Australian market to AUD575 million. 

The "Kangaroo" market is one of the most exclusive in the world and only allows high-quality bond issuers. This transaction strengthens CAF's positioning alongside other international issuers boasting strong presence in the market. 

"The operation marks CAF's strategy to diversify funding in international markets, attract resources for Latin America as well as bring about financing conditions that favor regional development," said CAF Executive President Enrique García, who highlighted that more 30 investors in Australia, Asia and Europe subscribed to the new issue. 

The institution has carried out a total of 14 bond issues in 2013, raising more than USD2.3 billion alongside a very select group of issuers. 

CAF is among Latin America's top-rated bond issuers. Over the years, CAF has received 13 rating upgrades from the major agencies (Fitch, Japan Credit Rating Agency, Moody's Investors Service and Standard & Poor's). CAF debt currently carries an "AA" rating.