Second bond issue in the Mexican market

(Caracas, May 15, 2008).- The Andean Development Corporation today announced a second issue of stock exchange certificates in Mexico for 800 million Mexican pesos (equivalent to around US$76 million) payable in 2010. The final amount was the result of demand received from a large number of institutional investors. The placement agent on this occasion was HSBC.

Last November CAF made its first incursion into the Mexican market with an issue of 750 million pesos.

Since 1993, the Corporation has made 62 bond issues totaling US$9 billion in the most important international capital markets of the United States, Europe, Asia and various countries of Latin America. This financing strategy is based on diversification of sources and terms, mitigation of risks associated with interest rates and currencies, and obtaining competitive rates to permit effective intermediation of the funds.

CAF also maintains its presence on short-term capital markets through various commercial paper programs in the United States and Europe, as well as a short-term commercial paper program in Spain for an aggregate amount of approximately US$2.5 billion. In Latin America the Corporation has been entering markets with successful placements in local currency; in 2007 two issues were made in Venezuela and one in Mexico, after previous placements in Peru and Colombia.