In order to diversify funding sources and its investor base, CAF – development bank of Latin America– debuted in the renminbi (CNY) bond market, reasserting its presence in international markets with its first bond issue in Chinese currency.
The placement was for CNY600 million ($100 million), with strong demand of over CNY1.2 billion for the bond due in 2015, which has a 3,55 % coupon.
After noting that the institution is among the first Latin American issuers in this market, CAF President Enrique García said “ our superior credit ratings, our demonstrated financial strength over the years, and the support of our shareholder nations make CAF a trusted issuer in prestigious markets.”
This issue –led by HSBC and Standard Chartered– reinforces the active participation of the institution in new markets as part of a very select group of issuers, showing its catalytic role by attracting funds into Latin America from other regions to promote investment opportunities in the region.
“The continued presence of the institution in different capital markets has allowed it to issue a total of nearly $2.8 billion in 2012,” Mr. García said.
The diversification of CAF’s investor base is reflected in the fact that is includes 40 investors from Hong Kong, Singapore, Taiwan, Korea, Switzerland, Germany, France, the Netherlands and Luxembourg, among other nations.
CAF bond placements between 1993 and 2012 total approximately $17 billion, which translates into an equivalent level of investments in development projects in Latin America
CAF provides multiple financial services with high added value for both the public and private sectors in the form of loans and guarantees, financial advisory service and investment banking, treasury services, equity investments and technical cooperation, among others.