Unprecedented US$1 billion bond issue on US market

(Caracas, May 28, 2009).- The US$1 billion bond issue which the Andean Development Corporation placed today on the US market was seen as a new milestone. The rapid growth of the institution, combined with the good reception of investors, resulted in the highest placement in the history of the international financial organization.

Heavy demand from numerous institutional investors in the United States, Europe and Latin America tripled the amount offered. The operation enjoyed a high level of participation by prestigious new investors which, during the session, significantly increased the order book. The agents responsible for the transaction were Credit Suisse and Bank of America Securities-Merrill Lynch.

"This placement reflects that fact that CAF, even in the difficult environment of the financial crisis, is established as a reliable issuer," President & CEO Enrique Garcia said. "This is the largest issue in the Corporation's history with a demand of approximately US$3 billion, with high participation by new investors."

Garcia added, "This would not be possible without the financial strength of the institution, reflecting the continuous growth of capital, consistent improvement in risk ratings and the strong commitment of its member countries, which permit the Corporation to raise funds in a stable and competitive way, strengthening its catalytic and anti-cyclical role"

As financial intermediary, CAF attracts funds into Latin America to promote investments and trade opportunities in the region. With these funds, it concentrates its strategy of action on the socioeconomic development of the shareholder countries by financing operations to improve the competitiveness of their economic sectors, develop their economic and social structure, support the physical and border integration of the region, reduce poverty, promote small- and micro-enterprise, strengthen local and regional financial markets, develop human capital, and foster the reform and modernization of the State.