August 28, 2013
Corporacion Andina de Fomento (CAF) took advantage of additional investor interest to add AUD75m ($67m) to its new Kangaroo bond Tuesday, taking the outstanding size to AUD350m, Gabriel Felpeto, CAF’s director for financial policies, tells LatinFinance. The AA minus/Aa3/A+ rated supranational lender priced the additional 2016s at 99.443 with a 4.25% coupon to yield 4.45%, or mid-swaps plus 135bp. The transaction is not a reopening, the official explains – it is not uncommon in the Australian market for an issuer to add size during the settlement period to give investors flexibility in participation. A handful of central banks and insurance companies represented the bulk of the AUD75m, he says. Deutsche Bank and Westpac Institutional Bank managed the deal, originally priced last week at a 4.47% yield. It represented LatAm’s second ever AUD-denominated bond sale and the first true Kangaroo bond from the region.