Funds to be obtained through CAF´s first local-currency issue in the region

Andean Development Corporation President Enrique García and Colombian Foreign Trade Bank (Bancoldex) President Gustavo Ardila Latiff today signed an agreement to grant access to a credit facility for small and medium-sized enterprises (SMEs) up to the equivalent of $50 million in Colombian pesos.

García said that the funds would be obtained through CAF´s first issue of paper in local currency in the region. "With this operation, we hope to contribute to strengthening the capital market in Colombia by giving local investors the opportunity to support the SMEs, which is considered to be a strategic sector for a country´s competitiveness," the CAF president said.

Bancoldex will channel the funds from the CAF credit facility through rediscount lines with local financial institutions or through direct loans to other institutions which grant loans to satisfy the needs of SMEs.

Bancoldex is the Colombian development bank that acts as a wholesale bank for exporters and SMEs, fulfilling a very important role in the government´s priority programs.

The bond issue for an approximate value of $142 billion Colombian pesos was authorized by the Colombian Securities Superintendent in Resolution 73 of November 6.

Currently, the CAF enjoys the highest ratings assigned by international risk agencies to a Latin American issuer ("A" by Standard & Poor´s and Fitch, and "A" by Moody´s). With this backing, the multilateral lender has successfully placed its bonds and commercial paper on demanding capital markets in the United States, Europe, Japan, Spain and Great Britain.

This issue is CAF´s first in a Latin American country, which demonstrates its confidence in the maturity of the Colombian securities market.