First participation in lira-dollar market

CAF today placed its first issue on the euro-lira market at one of the most competitive rates achieved by a Latin American issuer, CAF President & CEO Enrique García said in Caracas.

The issue – for 200 billion lira (US$150 million) at three years – was placed today in Milan, Italy, with the participation of investors from all over Europe. The placement was led by JP Morgan and a syndicate of prestigious US and European financial institutions, with important participation by Italian banks.

García said this was CAF’s fourth issue on international capital markets in 1998 and the third in Europe, which demonstrates that the Corporation is perceived as a serious and reliable issuer by investors who operate in these markets.

This is the first issue placed in liras, after a previous issue (January 14, 1998) in German marks, which demonstrates "the institution’s versatility in issuing bonds flexibly and rapidly in any currency and on different markets," he added.

Lastly, García said CAF would continue its strategy of financial diversification aimed at maintaining a continuous presence and developing a broad investor base in Europe, with a view to the launch of the European Monetary Union on January 1, 1999.   The success of the issue was considerably helped by the A3, A- and BBB+ investment-grade ratings assigned to CAF by Moody’s, IBCA and Standard & Poor's, respectively, for its long-term debt.

CAF made its first public bond issue in 1993, precisely on the euromarket. During these five years it has generated funds totaling US$2.211 billion (see accompanying table) at the most competitive rates for a Latin American issuer, which CAF has channeled on very attractive conditions into the shareholder countries, contributing to their sustainable development and regional integration.

CAF – international financial institution with headquarters in Caracas – is formed by 12 countries of the region. Five of them are members of the Andean Community: Bolivia, Colombia, Ecuador, Peru and Venezuela, while the rest – Brazil, Chile, Jamaica, Mexico, Panama, Paraguay and Trinidad and Tobago – are members of other regional integration schemes such as Mercosur, Caricom, FTA and G-3, which reinforces one of the objectives of the Corporation, which is to act as a bridge between them and facilitate their access to international capital markets.