Euromoney awards international prize to CAF

(Caracas, June 14, 1995).—Taking into consideration its successive and successful transactions on international capital markets, and the solidity of its financial indicators, the prestigious British Euromoney magazine awarded CAF the “Euromoney’s Borrowers of the Year Award" in the category "Best Issuer of Latin America," according to reports from London today.

For the selection in this category, which covers the period from June 94 to June 95, Euromoney evaluated the issues made, their conditions, the receiving market and the financial record and results of the issuer, as well as consulting representatives of the international investment community, financial institutions, and borrowers.

In the specific case of CAF, the magazine took very much into account its permanent presence on these markets and the competitive rates received for its placements, together with the fact that it was the first Latin American issuer to access these markets after the difficult situation in the region following the Mexican crisis.

CAF - financial institution formed by Bolivia, Colombia, Ecuador, Peru and Venezuela- offers trade, investment and development banking services. With assets over US$2.25 billion, the Corporation’s shareholders also include Mexico, Chile, Trinidad and Tobago, and 22 private banks from the Andean region. In 1994, CAF approved operations in favor of member countries for a total of US$2.16 billion, becoming the most important multilateral organization in providing finance for the sustainable development and integration of the Andean countries.

CAF President & CEO Enrique García gave the news during the closing ceremony of an international seminar on integration and development of Andean capital markets, held on June 12 and 13 in the CAF headquarters in Caracas. The event was attended by presidents of stock exchanges, central banks, and representatives of the financial and academic world of the Andean countries and Mexico.

García said he was pleased with the award because "it is recognition of the work that the institution is doing to participate in demanding international capital markets and maintain the confidence of investors in the region, despite periods of crisis, such as those experienced early this year in the wake of the events in Mexico."

Based on its operating results, in 1993, the Corporation became the first Latin American bank to simultaneously receive three investment grade ratings from the recognized rating agencies Standard & Poor's, Moody’s and IBCA.

With these ratings, confirmed in December 1994, CAF has successfully placed to date over US$800 million in paper, generating funds in the industrial world at very competitive rates. The most important were the bond issues on the euromarket, the Japanese Samurai market and the Southeast Asian Dragon market, along with placement of commercial paper on the US market (USCP). In February this year, CAF placed US$120 billion in bonds destined for private Japanese investors, which was the first Latin American issue after the Mexican crisis.

The funds generated by the CAF bonds will be used to finance productive activities in the Andean region. These funds, in combination with the annual contributions of member countries and lines of credit from other multilateral organizations (IDB, World Bank), form the financial base for the institution's operations.

The prize will be presented during the "Euromoney Borrowers and Investors Forum," an important annual event of the international financial world now being held in London, England.