CAF Euro Return Grows

CAF, the Caracas-based Andean multilateral, has priced a five-year euro-denominated bond issue, its first since May 2004. The EUR300 million FRN due November 16, 2011 priced at par to yield 40bp over Euribor. It was rated A1/A/A+ and done through Calyon and HSBC. Guidance was mid-40bps over three-month Euribor. The issue was expected to be at least EUR200 million and came more than seven times oversubscribed, according to a person close to the transaction. The Reg S deal was under London law and will be listed in the UK. Sales to Italy were 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.