Commercial paper placed in United States

(Caracas, September 20, 1994).-- A series of agreements between CAF and Bank of America were signed today in San Francisco, California, as starting point for a program of placement of CAF bonds on the commercial paper market of the United States (USCP).

CAF becomes the first Latin American multilateral financial institution to enter the largest money market in the world which annually trades US$550 billion.

The CAF US$150 million issue was led by Bank of America, with 11 important financial institutions accredited in the United States.

CAF President & CEO Enrique García said in San Francisco that the issue was very important. “It is a first step toward achieving recognition for our institution on the US domestic market, which only a very small group of Latin American issuers can access given its high standards.”

He added that the CAF paper is backed by the highest quality risk rating granted by Moody's and Standard & Poor's: A1+ and P1, respectively. The short-term funds generated will be used to finance foreign trade operations by the CAF member countries (Bolivia, Colombia, Ecuador, Peru and Venezuela).

"This placement is part of a broad program of CAF participation in the most solid and strategic international capital markets, which has resulted in placement of medium-term bonds -- for US$425 million at very competitive rates -- on the Euromarket, in Japan and the Dragon market of Southeast Asia."

Finally, he said that CAF played an intermediary role in attracting funds into the region from the industrialized countries, which are then channeled to member countries to finance a series of projects in a context of sustainable development and economic efficiency.