CAF Hits Panama, Plans USD, JPY

After raising $40m in Panama Friday, CAF is preparing its annual trip to the USD bond market, its finance directors tell LatinFinance, and hopes to tap the Yen market by the end of the year. The Andean multilateral also intends to hit up a few of the regions’ local markets. “We will be looking at the US market for a new benchmark,” CFO Hugo Sarmiento says. CAF is in the process of choosing banks for a deal that should come in the next few months, he says. The bank, a perennial multi-currency borrower, has raised CHF bonds this year in a retap of 2015s, and would like to return to Japan. “Last year we did our first deal in the Uridashi market, and we would like to do a larger one,” international director Gabriel Felpeto says, referring to the Yen-denominated retail-only market. CAF raised $74m equivalent 3.11% of 2014 bond, the first Uridashi from a LatAm issuer. CAF will also use its local market options, and issued a 2016 $40m dollar-denominated bond in Panama Friday, with the intention of helping to develop that market. The deal priced at par with a 3.625% coupon and was managed by HSBC. Felpeto says it is the first multilateral to issue in that market. It is also considering a sale in Chile, following legislation being put in place to allow multilaterals to issue so-called Huaso bonds. Sarmiento adds that CAF, rated A1/A+, is also looking to raise a syndicated loan in Asia, though he declines to offer further details. It is heard seeking a $150m 3-year deal at around Libor+ 95bp, according to market sources.