CAF’s Successful EUR 400 Million Bond Issue in Europe

(Caracas, November 23, 2010).- Reaffirming its presence in the European market, CAF—development bank of Latin America—completed a successful issue for EUR 400 million (equivalent to USD 540 million), yielding in March 2018, at a 4.625% rate. This bond’s demand was three times greater than the original amount of EUR 300 million, and thus, it was possible to raise the placement and in turn, obtain the minimum price of the range announced to the market.

The issue had a widespread participation of 80 investors from 13 European and Middle Eastern countries, mainly from Germany, France, Great Britain, Netherlands, and Switzerland, with most of the accounts managing funds, insurance, pension funds and banks, among others. The leading banks were HSBC and BNP Paribas.

CAF Executive President Enrique García said that this placement is a reflection of the bank’s active presence in the most prestigious international markets. “Since 1993, CAF has completed issues totaling approximately USD 12.5 billion.” Thus, the institution demonstrates its catalytic role in attracting funds from industrialized countries to Latin America, to promote investments and commercial opportunities in the region.

CAF’s Executive President added that the institution’s permanent presence in the various capital markets has made it possible to issue an amount close to USD 2 billion this year.

García concluded by pointing out that “without CAF’s high credit ratings, this successful presence in the markets would not be possible. Once again, our financial soundness is confirmed by the success obtained with this new issue.” It should also be noted that this placement was achieved despite the volatility in capital markets caused by the financial crisis in Ireland.

The institution’s ratings are one of the highest among debt issuers in the region, in recognition of its excellent financial indicators, solid legal structure and the permanent commitment of its shareholder countries.