CAF Continues Diverse Funding Amid Volatility

Regional development bank CAF has landed bond transactions in Switzerland and Hong Kong. The Andean development bank issued a CHF175m ($180m) 2.5-year floating-rate bond at par with a coupon of 3-month Libor+145bp. The price represents a 20bp increase from its last issuance, of CHF125m in February. CAF CFO Hugo Sarmiento tells LatinFinance that while spreads have widened due to volatility, the conservative Swiss market is open to a few select issuers, and represents geographic and investor diversification. Credit Suisse managed. A1/A+/A+ rated CAF also tapped the Hong Kong dollar market, for HKD398m ($51m). The 12-year bond priced at par with a 4.00% coupon. Goldman Sachs led that transaction. The two transactions follow a $50m-equivalent 30-year note issuance in the Taiwanese market in April.