CAF places 1 billion euros of seven year bonds to promote development in Latin America

CAF, the development bank of Latin America, today issued a benchmark sized bond in Europe with a seven year maturity and a coupon of 1.125 per cent, for a total of 1 billion euros. Investor demand exceeded 1.2 billion euros, undoubtedly good news amid the volatility seen in capital markets.

The first issue of the year is also the largest and longest benchmark transaction CAF has carried out in euros. The main investors bidding for the bonds were fund managers, banks, public institutions and central banks, and insurers, among others, from Europe, the United States and Asia. The placing banks were BBVA, Crédit Agricole and HSBC.

CAF's executive president, Luis Carranza, said: "We are pleased to start the year attracting funds from international markets towards Latin America to promote sustainable development, productivity and regional integration. This issue also confirms investors' confidence in and interest in CAF paper, which is good news for the institution's 19 shareholder countries."

For more than two decades CAF has pursued a strategy of diversifying its funding sources through an uninterrupted presence in global capital markets, which has placed it in a privileged international position. The multilateral bank promotes sustainable development and regional integration by efficiently mobilising resources to provide timely, high value added financial services to public and private sector clients in its shareholder countries.