New achievement in Samurai market

(Caracas, November 10, 1994).-- As part of a broad program of participation in the most solid and strategic international capital markets, CAF today placed its second bond issue on the Japanese domestic market, better known as the Samurai market.

With this issue, which totaled ¥12 billion (US$125 million), CAF has now placed medium-term bonds for over US$550 million on the Euromarket, in Japan, and on the Dragon market of Southeast Asia.

Also, last September last the Corporation placed commercial paper for the first time in the United States -- considered the largest money market in the world -- for US$150 million.

CAF President & CEO Enrique García, interviewed in Tokyo, said he was very pleased because the issue had been planned for less (US$100 million) but had to be raised 25% because of the great interest of Japanese investors in acquiring the securities. The issue received an excellent “A-" rating from the British firm IBCA.

"The intense activity that CAF is deploying to generate funds from developed countries and channel them into Latin America has been very successful," he said. This reflects recognition of the ongoing process of change in the region, now considered a serious and reliable partner for investors operating in the leading international financial markets."

"Our goal is to continue generating funds at very attractive rates and attracting capital so that CAF member countries can cover their economic and social development requirements. The Corporation, backed by the best credit rating in Latin America, has become one of the main vehicles for the participation of the Andean region on international capital markets," García said.

The placement is being managed by a syndicate formed by 20 prestigious Japanese and international financial institutions led by Nikko Securities Co.