Successful results for CAF bonds on international financial markets

(April 16, 1993).-- Excellent results were obtained on international financial markets by the first public placement of bonds issued by CAF, which since last month has held the investment-grade rating for its long-term obligations.

On April 15, CAF issued bonds for US$100 million on the Euromarket (United States, Europe and Japan) at five years with a fixed interest of 7.25% annually.

The Corporation originally planned this issue for US$75 million but this was raised to US$100 million following the great interest shown by investors, which reflects the attractiveness of the paper and confidence in the issuer.

Executives of important financial institutions in New York confirmed the high level of acceptance enjoyed by the issue on the US financial market.

The placement was managed by a syndicate of banks led by Chemical Bank, with two European banks (Deutsche Bank and Union Bank of Switzerland) and a Japanese investment bank (Nomura International).

Eleven more first-category financial institutions took part in the syndicate: Citibank, Bankers Trust, JP Morgan, ING, ABN, Bear Stearns, Nikko, Merrill Lynch, Dresdner Bank, Montague and BHF.

This operation is the starting point for the new direction of CAF’s medium- and long-term financing activities.

“The intense activity of the Corporation aimed at generating funds from the developed countries and channeling them into the Andean subregion has had successful results," CAF President & CEO Enrique García said. "The success of this issue is not only ours, but also represents recognition of the process of change in Latin America, region which is developing into a serious and reliable partner for investors which operate in the leading international financial markets."

CAF Vice President of Finance Juan Fernando Posada said the issue "would generate new funds at very attractive rates, diversify sources of financing and attract capital into our member countries, and permit us to cover their economic development requirements.