First Latin American issuer to access extendible note market

The Andean Development Corporation (CAF) today placed a $150-million issue on the extendible note market in the United States, becoming the first Latin American issuer to access this market, which is reserved for issuers with the highest credit rating. The lead bank was Goldman Sachs investment bank.

CAF Executive President Enrique Garcia said that the $150-million placement opens an entirely new investment segment for the Corporation. The bond´s innovative structure is perfectly adapted to the CAF’s conservative financial and operating policies, he added.

Extendible notes combine the characteristics of commercial paper and bonds, permitting investors to extend the term to a maximum of five years and the CAF to provide finance for the term at rates comparable to short-term lending. The general conditions of the placement are:

Amount: $150 million

Term: minimum 1 year, maximum 5 years (at investor´s option)

Coupon: LIBOR+0.150% 1ST year to LIBOR+0.250% 5th year

Lead Bank: Goldman Sachs

Market: SEC registered

The CAF has become one of the most prestigious issuers on the US, Japanese, European and Latin American markets, both long and short term. With this new issue, the Andean lender has raised a total of $350 million on bond markets this year, through offerings in the United States and Europe.