CAF Cultivates the Europeans
The multilateral bank that serves impoverished Andean economies received a warm reception for its long term bond issue from wary European investors.
Corporación Andina de Fomento, the Caracas-based Andean development bank known as CAF, excels at bridging markets. The single A-rated multilateral is Latin America's highest-rated issuer and the single largest source of financing to the impoverished economies of the Andean region. Over the years it has financed its mission by issuing debt in the international capital markets. In June, it successfully placed a ?350 million, seven-year bond with European institutional investors, led by Dresdner Kleinwort Wasserstein and Merrill Lynch International. "This operation confirms the long-term strategy we have designed for the institution, which is to maintain a permanent presence on the most important international financial markets," says Enrique García, president of CAF. Hugo Sarmiento, CAF's chief financial officer, says CAF broadened its investor following in Europe. "This is the first time we achieved a seven-year maturity in Europe, which was important because...
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