New financial record in Latin America

(Caracas, October 7, 1993). -- Excellent results were obtained by CAF with the second public placement of bonds on the Euromarket, especially the most favorable interest rates obtained by a Latin American financial institution on the international capital market.

The placement, for US$100 million, marks a financial record in the region since these papers have the highest return of any issue in relation to US Treasury bonds.

CAF President & CEO Enrique García has just completed a road show – in New York, Washington, London, Frankfurt, Geneva and Zürich – to promote placement of this paper, as part of the Global Program for Bond Issues under which another US$400 million will be placed in the medium term.

García said this fact reflected the quality and credit standing which international markets assign to the Corporation, the only Latin American institution which holds three investment-grade ratings from the most important risk rating agencies of Europe and the United States: IBCA, Moody’s and Standard & Poor's.

The road show also promoted the Andean countries and the Latin American situation in general. In various forums and interviews at the highest level, the CAF president emphasized the continuity and consistency of the reforms adopted in the region, and the irreversible nature of the democratization process and macroeconomic measures adopted.

"The funds generated by these issues -- he said -- will be used to finance various short-, medium- and long-term operating facilities, oriented to the private sector."

The issue was led by CS First Boston Co. and supported by a syndicate of prestigious banks, including Merrill Lynch, Goldman Sachs, Deutsche Bank and UBS.

The first public issue of CAF bonds on the Euromarket -- also for US$100 million - was made in April this year, attracted the interest of investors because of the excellent conditions of the monetary instrument. On that occasion, the syndicate was formed by two European banks and a Japanese investment bank, led by the US Chemical Bank.