CAF Returns To Euros

CAF, the Caracas-based Andean multilateral, is out with a five-year euro-denominated bond issue, its first since May 2004. The A1/A/A+ rated trade through Calyon and HSBC is talked at mid-40bps over three-month Euribor. Size is to be decided and expected to be at least EUR200 million. The Reg S deal is under London law and will be listed in the UK. Sales to Italy are accepted. CAF issued EUR150 million in a three-year FRN via BBVA and Deutsche in May 2004 with a 30bp over three-month Euribor coupon. Besides raising cash, its return to euros may be an attempt to set an example for other Latin borrowers who have long neglected this market. It will pay to keep this market open as a back-up when the dollar market becomes hostile.