CAF Revisits Europe

CAF reappeared in the euro market Wednesday to raise EUR250m ($343m) via a reopening of its 2018 bonds. The Andean multilateral retapped the A1/A+ 4.625% coupon bond at 98.505 to yield 4.879%, or mid-swaps plus 175bp, the tight end of 180bp area guidance. Demand reached almost EUR400m, according to CAF director of financial policies and international issues Gabriel Felpeto, allowing an upsize from EUR200m. He tells LatinFinance the bank picked up leftover demand from the original deal, though 25% of the book was new investors. Participation came from 40 accounts in 13 European countries. Pricing was about the equivalent of dollar mid-swaps plus 195bp-200bp, according to bankers on the deal. This represents some savings to its dollar curve, with CAF’s 2019 trading at the equivalent of dollar mid-swaps plus about 215bp, they add. Wednesday’s price also compares favorably to the level CAF got in November, when it originally priced the bond at euro mid-swaps plus 200bp, or dollar mid-swaps plus 220bp equivalent level, Felpeto says. BNP and HSBC managed. CAF raised EUR400m from the original sale in November, also through BNP and HSBC, its first in Europe for 4 years.