CAF sells Samurai bonds in second deal this week
February 4, 2022 | Hernán Goicochea
South American development bank prints $63 mln in yen-denominated notes after raising $650 mln in the dollar market
International Financial Institutions Corporate & Sovereign Strategy CAF Bonds Debt Fixed Income Capital Markets South America Japan
South American development bank CAF issued ¥7.2 billion ($62.6 million) in Samurai bonds in the Japanese market on Thursday, following the sale earlier in the week of $650 million in dollar-denominated bonds, a bank executive told LatinFinance.
CAF priced the yen-denominated 2032 bonds at par to yield 0.6% after opening the deal around the same rate. SMBC was the sole bookrunner, and the bond buyers were mostly institutional investors from Japan, said Manuel Valdez, head of debt capital markets and derivatives at CAF.
The bank will use the proceeds for general corporate purposes, he added.
CAF has gone to the international debt markets on two other occasions this year. It sold $650 million worth of five-year dollar-denominated notes on Tuesday and raised CHF360 million last month in the second sale of green bonds in the Swiss market. It also printed $1 billion in three-year notes in October last year.
Fitch Ratings affirmed CAF's A+ rating last month and improved the outlook to positive from stable, citing a large capital increase by the development bank and the "favorable dynamics" of its loan portfolio.
CAF previously sold ¥5 billion worth of three-year Samurai bonds in March last year and printed ¥31.3 billion in a three-part deal to retail and wholesale investors in February 2021.