by Maria O'Brien
Credit Where Credit Is Due
CAF stands to wow investors with improving financial results, its first Samurai bond issue in four years and now Italy seeking to become a member.
The Andean Development Corp. (CAF) is an anomaly. It is an
investment-grade rated public-sector development bank whose
principal owners are some of the most unstable countries in
Latin America. CAF is controlled by the governments of Bolivia,
Colombia, Ecuador, Peru and Venezuela. And yet CAF has won a
reputation for strong management and innovation.
CAF underscored its status as Latin America's highest-rated
issuer in June, when it became the first Latin American issuer
to sell bonds in Japan since Argentina's economic crisis in
2001. The issue was a three- and seven-year, two-tranche bond
for ¥20 billion ($180 million) priced to yield 0.58% and
1.31% respectively. "We hope that this will open the way for
other issuers in the region," Hugo Sarmiento, CAF's chief
financial officer, said...
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