CAF sells Samurai notes

CAF sells Samurai notes

Bonds Debt Capital Markets Corporate & Sovereign Strategy Fixed Income Latin America

Latin American development bank CAF said it sold ¥17.2 billion ($160 million) worth of five-year Samurai bonds among Japanese retail investors on Tuesday.

The 2025 bonds priced at par with a 0.77% coupon, the bank said. A target range of 0.4% to 1% had originally been set for the notes.

"This deal shows the kind of penetration CAF can achieve in Japan and Asia," Manuel Valdez, head of debt capital markets funding and derivatives at CAF, told LatinFinance.  "Retail dedicated Samurais are pretty rare these days, especially from LatAm issuers. There hadn't been one for several years of this size," he said."

The bank will use the proceeds for general corporate purposes, CAF said.

The Japan Credit Rating Agency (JCR) assigned these Samurai bonds a AA rating with a stable outlook on Tuesday. The rating on this fourteenth Samurai series reflects the member countries' strong support, preferred creditor status, sound financial status and ample liquidity, the rating agency said.

Despite the "relatively high political and economic risks inherent in its major member countries," JCR found strength in CAF's massive capital increases and in its resilience to stresses with actions such as "lowering concentration in its borrowers and diversifying funding sources while adhering to conservative financial policies."