CAF Borrows From Taiwan Banks

CAF has secured $100m in 4-year money at Libor plus 60bp through a bullet loan syndicated mainly to Taiwanese banks. “This opens up a new relationship. CAF is very interested in tapping the investor base and there is a lot of liquidity there,” says a banker on the deal. “Taiwanese banks want to pick up yield and the Latin American market looks attractive. The increasing level of trade between Asia and Latin America means these banks are also keen to establish relationships,” he adds. Mizuho was mandated lead arranger and administrative agent on the transaction. Bank of Taiwan came in as lead arranger, while Chang Hwa Commercial Bank, Taiwan Cooperative Bank, United Taiwan Bank and Land Bank of Taiwan were arrangers. MLAs received fees of 100bp for a ticket over $10m. Arrangers got 90bp in fees for committing $5m-$10m. Proceeds will be used for working capital, says a banker on the deal. CAF sold a $74m 2014 bond into the Japanese market in May, priced at 99.98 with a 3.11% coupon to yield 3.12%. It was the first ever retail-only placement in the Japan market by a LatAm issuer, according to CAF.