When Corporación Andina de Fomento (CAF) decided to
issue a euro-denominated bond in 2002, it took on a
considerable challenge. Unlike the multilateral's devoted
following of US investors, European investors needed convincing
that CAF is a worthwhile risk even though it is heavily exposed
to the turbulent Andean region. With the help of bookrunners
Merrill Lynch and Dresdner Kleinwort Wasserstein, CAF persuaded
new and existing investors in Europe to buy its 350
million seven-year bond at a time when the euro market was
still suffering a vicious hangover from the Argentine default
in January 2002. CAF's success in cultivating new investors in
an especially tough market makes its 350 million issue
the LatinFinance multilateral bond of the year.
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