The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Latin America - Best agency borrower of the year


The past year has not been easy for Corporación Andino Formento (CAF), the Andean Development Bank. Troubles in Venezuela, where the agency is based, have meant that investors have started charging a premium for its paper, and the Andean region in general has suffered from both Venezuelan instability and civil war in Colombia.

But one bright spot in CAF's year has been its borrowing programme. The bank has issued no fewer than eight different bonds in three different currencies over the past 12 months, making it Latin America's most prolific borrower. Between them, the bonds add up to more than $1.66 billion, which might not sound like all that much until you realize that CAF's total amount of debt outstanding - including all eight issues - only comes to about $3.8 billion.

CAF's most recent yankee bond is typical of how it goes about issuing its paper. A $500 million 10-year deal from Merrill Lynch in May, it was upsized from $300 million after receiving more than $2.1 billion in orders despite a coupon of just 5.2%. From price talk in the 175 to 180 basis point range, the bond actually came at 168bp over treasuries, and immediately tightened even further in the aftermarket.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree