First commercial paper program launched in Europe

The Andean Development Corporation (CAF) today launched in London its first commercial paper program in Europe for US$500 million for issues in euros, dollars, yen, Swiss francs and pounds sterling.

CAF executive president, Enrique García, said the operation would expand the institution’s European investor base and attract more funds into the Latin American region at competitive costs. The program has been rated A-1 by Standard & Poor's and P-1 by Moody's, he added.

The lead bank for the operation is Barclays Capital in London with Barclays Capital, Credit Suisse First Boston and Merrill Lynch acting as placement agents.

García said the multinational lender has adopted a policy to develop highly competitive financial instruments on international markets, as part of its diversification strategy aimed at maintaining an active and continuing presence in a broad base of European investors. The Corporation is recognized as the most competitive Latin American issuer with respect to the rates and terms obtained for its placements.

On May 25, the CAF placed a bond issue of €350 million on the European market at seven years at a rate of 144 basic points over the reference bonds of the German government.