CAF goes big in dollar bond return

CAF goes big in dollar bond return

Bonds Debt Capital Markets Corporate & Sovereign Strategy Fixed Income Loans Venezuela Andean

The Caracas-based development bank CAF has sold $1.25bn in dollar-denominated bonds, brushing aside investor concerns about Venezuela's political turmoil.

"CAF is a regional bank that is somewhat isolated from the problems in Venezuela," said an investor who owns bonds from the state oil company PDVSA.

The underwriters Barclays, Goldman Sachs, HSBC and JPMorgan priced the three-year notes with a coupon of 3.25% after they received $1.7bn in orders from roughly 80 investors, CAF said in a statement.

"CAF took advantage of investors' trust and interest and carried out a new issuance to diversify its institutional investors base, especially with central banks, public institutions and fund administrators from the United States, Europe, Africa, the Middle East and Latin America," the bank said.

CAF sold €750m ($851m) in five-year, euro-denominated notes at 0.625% in January. The underwriters were Barclays, BNP Paribas and JPMorgan.

Fitch Ratings and S&P Global Ratings give CAF a AA- score, while Moody's rates it Aa3.