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.

Local currency bonds: CAF paves the way in bolivares

The development of Latin America’s local capital markets continues apace following the first bond issue by a multilateral organization in Venezuela in 30 years. The bond, worth B215 billion ($100 million) and with a five-year maturity, was launched last month by CAF, the Andean development bank. It is the biggest non-government bond issued in Venezuela.

Enrique García, president and CEO of CAF, says that the deal fits with the bank’s aim of helping develop its member countries’ capital markets. CFO Hugo Sarmiento adds: “It provides local institutional investors with a portfolio diversification opportunity [and the bond] should have an active secondary market.”

More local liquidity

The deal, which was arranged by Citigroup, appealed to Venezuela’s growing investor base, including banks, insurance companies and mutual funds. “There is significant demand for bolivar-denominated securities due to an increase in liquidity in the local market,” says Sarmiento.

The deal, which took several months to arrange, could prove to be a watershed in Venezuela’s capital markets history. A shallow market, high inflation rates and currency instability made it difficult to issue in the past. In addition, regulatory hurdles prevented multilaterals from easily tapping the market. But in May the local supervisory body, the Comisión Nacional de Valores, introduced a new regulatory framework making it easier for multilaterals to issue bonds.

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