Once again CAF reopens regional access to international financial markets

(Caracas, September 22, 1998).– CAF today placed a new issue on the eurodollar market – for US$100 million at three years – the sixth by the financial institution on international capital markets this year.

The issue, at 180 basis points over the US Treasury rate, was launched in London with the participation of European institutional investors, led by Merrill Lynch.

CAF President & CEO Enrique García said he was very pleased with the news "because the Corporation is the first Latin American issuer to access international capital markets since the Russian crisis which has almost closed access by issuers, especially from emerging markets."

After the Mexican financial crisis (1994/95) and the Southeast Asian crisis (1997), CAF was also the first regional issuer to access these markets which restored confidence in Latin America among the investors which operate in them.

García said this was the fourth issue placed by CAF in Europe this year, two of which were in local currencies (German marks and liras), which demonstrates that "CAF continues to be the leading issuer in the region and that it is capable of issuing bonds flexibly and rapidly in any currency on different markets."

CAF made its first public bond issue in 1993, precisely on the euromarket and during these five years has generated funds on various markets for a total US$2.471 billion, at the most competitive rates and terms for a Latin American issuer, "which we have channeled on very attractive conditions into our shareholder countries," he added.

The success of the issue was considerably helped by the investment-grade ratings A3, A- and BBB+ assigned to CAF by Moody’s, Fitch-IBCA and Standard & Poor's, respectively, for its long-term debt.

CAF – international financial institution with headquarters in Caracas – is formed by 12 countries of the region. Five 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.